Bythel Corporation uses the product cost concept of product pricing.Below is cost information for the production and sale of 45,000 units of its sole product.Bythel desires
a profit equal to a 10.8% rate of return on invested assets of $900,000.

-The dollar amount of desired profit from the production and sale of the company's product is
A)$97,200.
B)$67,200.
C)$73,500.
D)$96,000.

Question

Bythel Corporation uses the product cost concept of product pricing.Below is cost information for the production and sale of 45,000 units of its sole product.Bythel desires
a profit equal to a 10.8% rate of return on invested assets of $900,000.
 
-The dollar amount of desired profit from the production and sale of the company's product is
A)$97,200. 
B)$67,200. 
C)$73,500. 
D)$96,000.

Quizplus · Accepted Answer

The desired profit is calculated as the difference between the selling price and the cost of goods sold. The selling price is $160,000 and the cost of goods sold is $62,800. Therefore, the desired profit is $160,000 - $62,800 = $97,200.

Bythel Corporation Uses the Product Cost Concept of Product Pricing