Use the Following Information for Questions
Red Grass Company

question 4

Multiple Choice

Use the following information for questions
Red Grass Company produces high definition television sets and uses total cost-plus pricing.The following information is available for this product:
$$\begin{array} { l l } \text { Fixed cost per unit } & \$ 100 \\\text { Variable cost per unit } & 300 \\\text { Total cost per unit } & 400 \\\text { Desired ROl per unit } & 140\end{array}$$
-The target selling price for this television is

• A)$240.
• B)$400.
• C)$440.
• D)$540.

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Definitions:

Registered

This can refer to securities, companies, or assets that have been officially recorded and recognized by regulatory authorities.

Premium

The amount by which the price of a financial instrument or commodity exceeds its principal or face value, or the amount paid for an insurance policy.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, typically shown as a portion of the bond's nominal value in percentage terms.

Ask Price

The ask price is the lowest price a seller is willing to accept for a security, commodity, or currency in financial markets.