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:

Faking Records

The act of unlawfully altering or fabricating documents or records, often for deceptive purposes.

Concealing Assets

The act of hiding or failing to disclose assets to avoid legal responsibilities or to deceive creditors or other parties.

Willful Injury

Intentional harm caused by one person to another, not through negligence or accident but with the purpose of inflicting damage.

Restitution

A legal process through which someone who has lost money or property to someone else's wrongful act is compensated by the person responsible for the loss.