Question:
A company expects to produce and sell 15,000 units of a single product. Management desires a 15% return on assets of $2,000,000. The following additional company information is available:
Variable costs(per unit)
Production costs $65
Nonproduction costs $7
Fixed costs (in total)
Overhead $97,000
Nonproduction $23,000
Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
$80
$100
$20
$72
$92