Question - Our company is a price setter and has the following information available for the current year:
• budgeted sales volume, 220,000 units;
• desired operating income as a percentage of total assets, 16%;
• variable costs, $25 per unit;
• fixed costs, $4,000,000; and
• total assets, $12,000,000.
What is our sales price per unit if we used the cost-plus pricing approach?
$49.60
$51.91
$54.60
$50.20