Dyggur Traders wishes to earn a 30% return on its $100,000 investment in equipment used to produce dog toys. Based on estimated sales of 10,000 toys next year, the costs per unit would be as follows: $\begin{array}{lr}
\text { Variable cost } & \$ 5.00 \
\text { Fixed selling and administrative costs } & 2.00 \
\text { Fixed manufacturing cost } & 1.00
\end{array}$ At how much per unit should dog toys be priced for sale?

Question

Quizplus · Accepted Answer

The correct answer is A because the selling price per unit should be $11.00 to earn a 30% return on investment.

Dyggur Traders Wishes to Earn a 30% Return on Its