Saffron Foods Sells Jars of Special Spices Used in Spanish

Saffron 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 $42,000,000 of average assets,and the desired profit is a 4% return on assets.Saffron Foods sells 5,000,000 units per year.The company uses cost-plus pricing because it is the only company that produces this kind of product.Using cost-plus pricing methodology,determine the sales price per unit.(Round your answer to the nearest cent. )

A) $1.25
B) $3.14
C) $2.80
D) $1.00