Use This Information for Dotterel Corporation to Answer the Questions

question 40

Multiple Choice

Use this information for Dotterel Corporation to answer the questions that follow.
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Dotterel Corporation uses the variable cost concept of product pricing. Below is the cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000.
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-The variable cost per unit for the production and sale of the company's product is

• A) $14.00
• B) $12.60
• C) $9.80
• D) $11.20

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Definitions:

Cohesion

Property of a substance (such as water) that arises from the tendency of its molecules to resist separating from one another.

Osmosis

Diffusion of water across a selectively permeable membrane; occurs in response to a difference in solute concentration between the fluids on either side of the membrane.

Sieve Elements

Living cells that compose sugar-conducting sieve tubes of phloem. Each sieve tube consists of a stack of sieve elements that meet end to end at sieve plates.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to higher concentration.