Explain the additional company information

Question

A company expects to produce and sell 15,000 units of a single product. Management desires a 15% return on assets of $2,000,000. The following additional company information is available:

1. Variable costs(per unit)
2. Production costs $65
3. Nonproduction costs $7
4. Fixed costs (in total)
5. Overhead $97,000
6. Nonproduction $23,000

Compute selling price per unit given that markup percentage equals desired profit divided by total costs.

• $80
• $100
• $20
• $72
• $92