Question
Conquest, Inc. produces a special kind of lightminusweight, recreational vehicle that has a unique design. It allows the company to follow a costminusplus pricing strategy.
Conquest, Inc. produces a special kind of lightminusweight, recreational vehicle that has a unique design. It allows the company to follow a costminusplus pricing strategy. It has $ 9 comma 000 comma 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: Sales volume 4 comma 000 units per year Variable costs $ 2 comma 000 per unit Fixed costs $ 4 comma 000 comma 000 per year Using the costminusplus pricing approach, what should be the sales price per unit? A. $ 2 comma 000 B. $ 16 comma 000 C. $ 2 comma 140 D. $ 3 comma 158
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