1. Recover, inc. produces a special kind of targeted therapy drug, which allows Recover to adopt a cost-plus pricing method. Recover has $10,000,000 of assets and investors expect approximately a 10% return on assets. Assume all products produced are sold. Additional data are as follows:

Sales volume	450,000	units per year
Variable costs	$16	per unit
Fixed costs	$1,700,000	per year

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

Select one:

A.

$2.22

B.

$16.00

C.

$19.78

D.

$22.00