A company expects to produce and sell 9,000 units of a single product. Management desires an 18% return on assets of $1,750,000. The following additional company information is available:
- Variable cost (per unit)
- Production cost $79
- Non-Production cost $5
- fixed costs
- Overhead $279,000
- non-prouction $90,000
Compute markup per unit. Assume that markup percentage equals desired profit divided by total costs.
- $84
- $125
- $160
- $35
- $110