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Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its
Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% return on invested assets of $350,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $105,000 35,000 4.34 5.18 0.98 0.70 The unit selling price for Dotterel's product is a. $13.44 b. $16.32 c. $13.72 Od. $12.10
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