Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000.
-The cost per unit for the production and sale of Magpie's product is
A)$12.11
B)$12.88
C)$15.00
D)$13.50

Question

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000.​  ​
-The cost per unit for the production and sale of Magpie's product is
A)$12.11 
B)$12.88 
C)$15.00 
D)$13.50

Quizplus · Accepted Answer

The Answer of Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000.​  ​
-The cost per unit for the production and sale of Magpie's product is
A)$12.11 
B)$12.88 
C)$15.00 
D)$13.50

Magpie Corporation Uses the Total Cost Method of Product Pricing