Solved: Total investment of aaa division 200000 the minimum desired, Accounting Basics

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Total investment of aaa division 200000 the minimum desired

Question - The following data pertains to AAA division of JJJ Company.

Selling price per unit $X

Variable cost per unit $7

Total fixed costs $100,000

Total investment of AAA division $200,000

Given:

a) The minimum desired return on investment equals to 20%

b) The estimated sales in unit is 50,000

What price should the company charge?

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Accounting Basics: Total investment of aaa division 200000 the minimum desired

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