Phoenix Co

question 41

Multiple Choice

Phoenix Co. wanted to achieve a 20 percent return on an investment of $2 million during the coming year. Last year total costs for its product were $200,000, and 40,000 units were sold. The company expects to sell the same number of units in the coming year. Using target return pricing, what price should it charge for its product?

• A) $5.
• B) $10.
• C) $15.
• D) $20.
• E) Cannot be determined from the information provided.

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Definitions:

Parties

Entities or individuals involved in a legal proceeding, agreement, or social gathering.

Motivate Employees

The process of inspiring staff to perform their jobs with enthusiasm, commitment, and high levels of effort.

Ownership

Refers to the legal rights and responsibilities associated with possessing an asset or property.