Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 29

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

• A) $14.00
• B) $12.60
• C) $ 9.80
• D) $11.20

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Definitions:

Psychology

The investigation into the human psyche and its operations, particularly those influencing conduct within specific scenarios.

Observable

Capable of being seen, noticed, or measured directly.

Mental Processes

The internal, covert activities of our minds, such as thinking, feeling, and problem-solving.

Structuralism

A methodology in psychology that examines the fundamental components of thoughts and sensations in order to comprehend the mind's structure.