Dyggur Traders wishes to earn a 30% return on its $100,000 investment in equipment used to produce dog toys. Based on estimated sales of 10,000 toys next year, the costs per unit would be as follows: Variable cost $5.00
Fixed selling and administrative costs 2.00
Fixed manufacturing cost 1.00
At how much per unit should dog toys be priced for sale?
A) $11.00
B) $9.00
C) $12.00
D) None of the above
Correct Answer:
Verified
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