Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 1

Multiple Choice

Dotterel Corporation uses the variable cost concept 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% rate of return on invested assets of $350,000. 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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