Able Specialty Foods Sells Jars of Special Spices Used in Spanish

Able Specialty Foods sells jars of special spices used in Spanish cooking. The variable cost is $0.90 per unit. Fixed costs are $8,400,000 per year. Able has $20,000,000 of assets, and investors expect a return of 10% on their assets. Able sells 4,000,000 units per year. Because they are the only company which produces this kind of product, they use cost-plus pricing. Using cost-plus methodology, how much should the price per unit be? (Please round to the nearest cent.)

A) $3.00
B) $3.50
C) $3.16
D) $3.24