A company expects to produce and sell 15,000 units of a single product.Management desires a 15% return on assets of $2,000,000.The following additional company information is available: $\begin{array}{lr}
\text { Variable costs (per unit) } \
\text {Production costs } &\$ 65 \
\text { Nonproduction costs } &\$7 \
\text { Fixed costs (in total) } \
\text {Overhead } &\$ 97,000 \
\text { Nonproduction } &\$ 23,000
\end{array}$ Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
A)$80
B)$100
C)$20
D)$72
E)$92

Question

A company expects to produce and sell 15,000 units of a single product.Management desires a 15% return on assets of $2,000,000.The following additional company information is available: $\begin{array}{lr}
 \text { Variable costs (per unit) } \
 \text {Production costs  } &\$ 65 \
 \text { Nonproduction costs } &\$7 \
 \text { Fixed costs (in total) } \
 \text {Overhead  } &\$ 97,000 \
 \text { Nonproduction } &\$ 23,000
\end{array}$ Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
A)$80
B)$100
C)$20
D)$72
E)$92

Quizplus · Accepted Answer

The Answer of A company expects to produce and sell 15,000 units of a single product.Management desires a 15% return on assets of $2,000,000.The following additional company information is available: $\begin{array}{lr}
 \text { Variable costs (per unit) } \
 \text {Production costs  } &\$ 65 \
 \text { Nonproduction costs } &\$7 \
 \text { Fixed costs (in total) } \
 \text {Overhead  } &\$ 97,000 \
 \text { Nonproduction } &\$ 23,000
\end{array}$ Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
A)$80
B)$100
C)$20
D)$72
E)$92

A Company Expects to Produce and Sell 15,000 Units of a Single