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At how much per unit should product X priced for sale

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Reference no: EM132980311

Question - Adly Corp. wishes to earn a 30% return on its $100,000 investment in equipment used to produce product X. Based on estimated sales of 10,000 units of product X next year, the cost per unit would be as follows:

Variable manufacturing costs $5

Fixed selling and administrative costs $2

Fixed manufacturing costs $1

At how much per unit should product X priced for sale?

a. $11

b. $8

c. $10

d. $5

Reference no: EM132980311

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