Dotterel Corporation Uses the Variable Cost Method of Product Pricing

question 13

Multiple Choice

Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% return on invested assets of $350,000. ​
-The dollar amount of desired profit from the production and sale of Dotterel's product is

• A)$89,600
• B)$39,200
• C)$70,000
• D)$84,000

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