Off Road Concepts, 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 $9,000,000 of average assets, and the desired profit is a 7% return on average assets. Assume all products produced are sold. Additional data are as follows:

Sales volume	2,000	units per year
Variable costs	$1,000	per unit
Fixed costs	$3,500,000	per year

Using the cost-plus pricing approach, what should be the sales price per unit?

• A.

  $3,065

• B.

  $8,000

• C.

  $1,070

• D.

  $1,000

• E.

  none of the above.