Use the Following Information to Answer the Following Questions

question 54

Multiple Choice

Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total cost?

• A) $868.
• B) $900.
• C) $1,000.
• D) $1,192.
• E) None of the answers is correct.

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Definitions:

Amygdala

An area of brain tissue, with extensive connections to the olfactory system and hypothalamus, thought to be involved in mood, feeling, instinct, and short-term memory.

Cerebellum

Part of the brain that controls balance and muscular coordination.

Critical Thinking Skills

The capacity for objective analysis and evaluation of an issue in order to form a judgment.

Critical Thinking Dispositions

A willingness or tendency to think critically, which involves analyzing, synthesizing, and evaluating information to form a reasoned judgment.