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Outdoor Recworld Produces a Special Kind of Light-Weight Recreational Vehicle

Question 59

Multiple Choice

Outdoor Recworld produces a special kind of light-weight recreational vehicle that has a unique design, and it allows the company to follow a cost-plus pricing strategy. Outdoor Recworld has $8,000,000 of assets and shareholders expect a 12% return on assets. Additional data are as follows: Outdoor Recworld produces a special kind of light-weight recreational vehicle that has a unique design, and it allows the company to follow a cost-plus pricing strategy. Outdoor Recworld has $8,000,000 of assets and shareholders expect a 12% return on assets. Additional data are as follows:   Using the cost-plus approach, what should the price per unit be? A) $2,432 B) $2,240 C) $2,560 D) $2,232 Using the cost-plus approach, what should the price per unit be?


A) $2,432
B) $2,240
C) $2,560
D) $2,232

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