Red Grass Company produces high definition television sets.The following information is available for this product: $$\begin{array} { l r }
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
-The target selling price for this television is
A)$550.
B)$1,000.
C)$1,050.
D)$1,300.

Question

Red Grass Company produces high definition television sets.The following information is available for this product: $$\begin{array} { l r } 
\text { Fixed cost per unit } & \$ 250 \
\text { Variable cost per unit } & 750 \
\text { Total cost per unit } & 1,000 \
\text { Desired ROl per unit } & 300
\end{array}$$
-The target selling price for this television is
A)$550.
B)$1,000.
C)$1,050.
D)$1,300.

Quizplus · Accepted Answer

The target selling price is calculated by adding the total cost per unit ($1,000) and the desired ROI per unit ($300), resulting in $1,300.

Red Grass Company Produces High Definition Television Sets -The Target Selling Price for This Television Is A)$550

Red Grass Company Produces High Definition Television Sets -The Target Selling Price for This Television Is
A)$550