Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 80

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:

Nonmaleficence

Fundamental ethical agreement to do no harm. Closely related to the ethical standard of beneficence.

Teratogens

Chemical or physiological agents that may produce adverse effects in the embryo or fetus.

Percutaneous Umbilical Blood Sampling

A medical procedure used to obtain a blood sample from a fetus via the umbilical cord.

Consequentialism

A moral theory that suggests the consequences of one's conduct are the ultimate basis for any judgment about the rightness of that conduct.