Majestic Products Is a Price-Setter, and They Use Cost-Plus Methodology

Majestic Products is a price-setter, and they use cost-plus methodology for pricing their products which are unique, artistically designed architectural decorations. They produce and sell 5,000 units per year, at their maximum capacity. Variable costs are $270 per unit. Total fixed costs are $800,000 per year. The CEO has a target of $40,000 operating profit which he wants to hit by year-end. Using the cost-plus method, what price should Majestic use? (Please round to nearest whole dollar.)

A) $322 per unit
B) $430 per unit
C) $438 per unit
D) $278 per unit