Use This Information for Magpie Corporation to Answer the Questions

question 43

Multiple Choice

Use this information for Magpie Corporation to answer the questions that follow.
​
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
​
​
$$\begin{array} { l r } \text { Fixed factory overhead cost } & \$ 38,700 \\\text { Fixed selling and administrative costs } & 7,500 \\\text { Variable direct materials cost per unit } & 4.60 \\\text { Variable direct labor cost per unit } & 1.88 \\\text { Variable factory overhead cost per unit } & 1.13 \\\text { Variable selling and administrative cost per unit } & 4.50\end{array}$$
-The unit selling price for the company's product is

• A) $15.00
• B) $13.82
• C) $15.79
• D) $14.76

---

Definitions:

Influenza

A highly contagious respiratory virus known for causing seasonal flu outbreaks.

Viral

Refers to viruses and their role in causing infections or diseases.

COPD

Chronic Obstructive Pulmonary Disease, a group of lung conditions, including emphysema and chronic bronchitis, that block airflow and make it difficult to breathe.

Legionnaire's Disease

A lung infection caused by Legionella bacteria, often spread through inhaling mist from water sources containing the bacteria.