Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total cost?
A) $868.
B) $900.
C) $1,000.
D) $1,192.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total cost?
A) $868. 
B) $900. 
C) $1,000. 
D) $1,192. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total cost?
A) $868. 
B) $900. 
C) $1,000. 
D) $1,192. 
E) None of the answers is correct.

Use the Following Information to Answer the Following Questions