Dane Metalworks produces a special kind of metal ingots which are unique, and it allows Dane to follow a cost-plus pricing strategy. Dane has $9,000,000 of assets and shareholders expect approximately 8% return on assets. Additional data are as follows:
$$\begin{array} { | l | r | r | }
\hline \text { Sales volume } & 200,000 & \text { Units per year } \
\hline \text { Variable costs } & \$ 16.00 & \text { Per unit } \
\hline \text { Fixed cost } & \$ 1,200,000 & \text { Per year } \
\hline
\end{array}$$
-
Using the cost-plus approach, what should the price per unit be? (Please round to the nearest cent.)

Question

Dane Metalworks produces a special kind of metal ingots which are unique, and it allows Dane to follow a cost-plus pricing strategy. Dane has $9,000,000 of assets and shareholders expect approximately 8% return on assets. Additional data are as follows:
$$\begin{array} { | l | r | r | } 
\hline \text { Sales volume } & 200,000 & \text { Units per year } \
\hline \text { Variable costs } & \$ 16.00 & \text { Per unit } \
\hline \text { Fixed cost } & \$ 1,200,000 & \text { Per year } \
\hline
\end{array}$$
-
Using the cost-plus approach, what should the price per unit be? (Please round to the nearest cent.)

Quizplus · Accepted Answer

The Answer of Dane Metalworks produces a special kind of metal ingots which are unique, and it allows Dane to follow a cost-plus pricing strategy. Dane has $9,000,000 of assets and shareholders expect approximately 8% return on assets. Additional data are as follows:
$$\begin{array} { | l | r | r | } 
\hline \text { Sales volume } & 200,000 & \text { Units per year } \
\hline \text { Variable costs } & \$ 16.00 & \text { Per unit } \
\hline \text { Fixed cost } & \$ 1,200,000 & \text { Per year } \
\hline
\end{array}$$
-
Using the cost-plus approach, what should the price per unit be? (Please round to the nearest cent.)

Dane Metalworks Produces a Special Kind of Metal Ingots Which