Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raleigh, Inc. makes a unique product and uses cost-plus pricing. The firm has $10,000,000 of assets and shareholders want a 10% return on assets. Additional

Raleigh, Inc. makes a unique product and uses cost-plus pricing. The firm has $10,000,000 of assets and shareholders want a 10% return on assets. Additional data:

Units made and sold

450,000 units

Variable costs

$16/unit

Fixed costs

$1,700,000

Using cost-plus pricing, what should the sales price per unit be? (Round answer to the nearest cent.)

A.

$16.00

B.

$2.22

C.

$22.00

D.

$19.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions