Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 52

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 a 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

---

Definitions:

Closed Fracture

A type of bone fracture where the skin over the broken bone remains intact.

Comminuted Fracture

A type of bone break where the bone is shattered into several small fragments.

Hypovolemic Shock

A state of shock resulting from insufficient blood volume in the circulatory system.

Toxic Shock Syndrome

A rare, life-threatening condition caused by bacterial toxins that may result from certain types of infections, including those associated with tampon use.