Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 116

Multiple Choice

Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. The unit selling price for the company's product is:

• A) $15.00
• B) $13.82
• C) $15.80
• D) $14.76

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Definitions:

PESO Model

A media model that categorizes the types of media as Paid, Earned, Shared, and Owned, used in marketing and public relations to maximize reach and engagement.

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