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A Cost-Plus strategy is used by Company X to set its product prices. Forty million dollars of capital are invested in Product Q. The company's
A "Cost-Plus" strategy is used by Company X to set its product prices. Forty million dollars of capital are invested in "Product Q". The company's desired ROI is 16%. Next year it is projected to make & sell 320,000 units of "Product Q" at a full product cost of $200 per unit. To meet it's objectives, the price for "Product Q" next year should be set at $222.50 per unit $220 per unit $212.50 per unit $202 per unit
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