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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 |
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