A firm sets its standard volume at 10,000 units. Investment costs are $4 million; and the target return on investment equals 15 percent. If the firm's average total costs at its standard volume equal $20, what is its target price?
A) $23
B) $35
C) $67
D) $80

Question

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The Answer of A firm sets its standard volume at 10,000 units. Investment costs are $4 million; and the target return on investment equals 15 percent. If the firm's average total costs at its standard volume equal $20, what is its target price?
A) $23
B) $35
C) $67
D) $80

A Firm Sets Its Standard Volume at 10,000 Units