A Firm Has Unit Costs of $10 Per Unit

question 46

Multiple Choice

A firm has unit costs of $10 per unit.The investment in capital for the production of the product is $2 million,expected unit sales are 100,000 units,and a desired rate of return on their investment is15%.Calculate the return price.

• A)$13
• B)$15
• C)$17
• D)$21

---

Definitions:

Theoretically Correct

A term indicating that something is consistent with theory or established principles, often used in academic or scientific contexts.

Differences

The distinctions or variations between two or more entities or items, highlighting how they are not identical.

Short Position

The selling of a stock or other securities not owned by the seller, expecting the price will fall so it can be bought back at a lower price.

Contract Maturity

The specified date on a financial contract when the final payment is made or the contract comes to an end.