Tosla Corporation has invested $1,000,000 in a plant to make commercial juicer machines. The company plans annual sales of 20,000 juicer machines. The target return on investment is 6% annually. Expected costs for next year are as follows:

Variable costs: $10 per unit

Fixed costs: $80,000

Assume the full cost is the cost base. What is the target selling price for Tosla Corporation?

Group of answer choices

$17

$20

$15

$22

2

What is the markup as a percentage of total cost?

Group of answer choices

$17.65%

$25.95%

$18.22%

$21.43%

3.

The pricing strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating income is referred to as

Group of answer choices

cost-plus pricing, or cost-based approach

short-run pricing

market-based approach

loss leading strategy