Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 86

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 unit selling price for the company's product is

• A) $16.32
• B) $13.44
• C) $12.10
• D) $13.72

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