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McCormick sells jars of special spices used in Italian cooking. The variable cost is $2 per unit. Fixed costs are $10,000,000 per year. It has
McCormick sells jars of special spices used in Italian cooking. The variable cost is $2 per unit. Fixed costs are $10,000,000 per year. It has $40,000,000 of average assets, and the desired profit is a 4% return on assets. McCormick sells 4,000,000 units per year. The company uses cost-plus pricing because it is the only company that produces this kind of product. Using cost-plus pricing methodology, determine the sales price per unit. (Round your answer to the nearest cent.) $4.50 $2.50 $4.90 $2.00
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