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Terra Potteryworks is a price-setter that uses the cost-plus pricing approach for pricing its products. These products are unique, artistically designed architectural decorations. Terra produces
Terra Potteryworks is a price-setter that uses the cost-plus pricing approach for pricing its products. These products are unique, artistically designed architectural decorations. Terra produces and sells 6200 units per year, which represent maximum capacity. Variable costs are $320 per unit. Total fixed costs are $910,000 per year. The CEO has a target of $60,000 in operating income, which he wants to achieve by year-end. Using the cost-plus pricing method, what sales price per unit should Terra use? (Round your answer to the nearest cent.) A) $156.45 per unit B) $476.45 per unit C) $329.68 per unit D) $466.77 per unit
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