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:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 65 \
\text { Nonproduction costs } & \$ 7 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 97,000 \
\text { Nonproduction } & \$ 23,000
\end{array}$
Compute selling price per unit given that markup percentage equals desired profit divided by total costs.

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:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 65 \
\text { Nonproduction costs } & \$ 7 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 97,000 \
\text { Nonproduction } & \$ 23,000
\end{array}$
 Compute selling price per unit given that markup percentage equals desired profit divided by total costs.

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:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 65 \
\text { Nonproduction costs } & \$ 7 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 97,000 \
\text { Nonproduction } & \$ 23,000
\end{array}$
 Compute selling price per unit given that markup percentage equals desired profit divided by total costs.

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