Red Co.uses the product cost concept of applying the cost-plus approach to product pricing.Below is cost information for the production and sale of 40,000 units of its sole product.Red Co.desires a profit equal to a 15% rate of return on invested assets of $1,200,000. ? ?
The dollar amount of desired profit from the production and sale of the company's product is:
A) $70,000.
B) $60,000.
C) $180,000.
D) $140,000.
Correct Answer:
Verified
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