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Conquest, Inc. produces a special kind of light - weight, recreational vehicle that has a unique design. It allows the company to follow a cost

Conquest, Inc. produces a special kind of light - weight, recreational vehicle that has a unique design. It allows the company to follow a cost - plus pricing strategy. It has $10,000,000 of average assets, and the desired profit is a 7% return on assets. Assume all products produced are sold. Additional data are as follows:
\table[[Sales volume,2000,units per year],[Variable costs,$1000,per unit],[Fixed costs,$4,000,000,per year]]
Using the cost - plus pricing approach, what should be the sales price per unit?
A. $3,350
B. $1,070
C. $8,000
D. $1,000
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