Yummy Foods sells jars of special spices used in Spanish cooking. The variable cost is $1 per unit. Fixed costs are $9,000,000 per year. It has $40,000,000 of assets, and investors expect a return of 5% on their assets. Yummy Foods sells 5,000,000 units per year. They use cost-plus pricing because they are the only company which produces this kind of product. Using cost-plus pricing methodology, determine the price per unit. (Round your answer to the nearest cent)

Question

Quizplus · Accepted Answer

The Answer of Yummy Foods sells jars of special spices used in Spanish cooking. The variable cost is $1 per unit. Fixed costs are $9,000,000 per year. It has $40,000,000 of assets, and investors expect a return of 5% on their assets. Yummy Foods sells 5,000,000 units per year. They use cost-plus pricing because they are the only company which produces this kind of product. Using cost-plus pricing methodology, determine the price per unit. (Round your answer to the nearest cent)

Yummy Foods Sells Jars of Special Spices Used in Spanish