Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 91

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 cost per unit for the production and sale of the company's product is:

• A) $12.11
• B) $12.88
• C) $15
• D) $13.50

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Definitions:

Memory Deficit

An impairment in the ability to remember information or events, which can occur due to neurological conditions, aging, or psychological factors.

Temporal Lobes

Regions of the brain located on either side of the head, involved in processing auditory information and encoding memory.

Cerebellum

A region of the brain that plays an important role in motor control, balance, and coordination.

Frontal Lobes

Regions of the brain located behind the forehead that are involved in complex cognitive functions, such as decision-making, problem-solving, and controlling voluntary movements.