Off Road Concepts,Inc.produces a special kind of light-weight,recreational vehicle that has a unique design.It allows the company to follow a cost-plus pricing strategy.It has $10,000,000 of average assets,and the desired profit is a 9% return on assets.Assume all products produced are sold.Additional data are as follows:
Using the cost-plus pricing approach,what should be the sales price per unit?
A) $4,450
B) $20,000
C) $2,180
D) $2,000
Correct Answer:
Verified
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