Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 144

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

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Definitions:

Union Power

The collective strength and influence a group of workers has through their union, often used to negotiate working conditions and wages.

Economic Conditions

The state of the economy at a given time, including factors such as inflation rates, unemployment levels, and GDP growth.

Skill Depth

The level of expertise or proficiency an individual has in a specific skill area.

Self-Management

The ability to manage one's own time, activities, and resources to achieve certain goals or maintain productivity.