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 $2 per unit.Fixed costs are $9,000,000 per year.It has $40,000,000 of average assets,and the desired profit is a 4% return on assets.Saffron Foods sells 4,000,000 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) $2.50
B) $4.65
C) $4.25
D) $2.00