Fine Arts Inc. produces a special kind of light weight, recreational vehicle that has a unique design. It allows the company to follow a cost-plus pricing strategy. It has $9,000,000 of assets and shareholders expect a 10% return on assets. Additional data are as follows:

Using the cost-plus pricing approach, what should be the price per unit?

Transcribed Image Text:

Sales volume Variable costs Fixed cost 4,000 $2,000 $3,500,000 units per year per unit per year Sales volume Variable costs Fixed cost 4,000 $2,000 $3,500,000 units per year per unit per year

Answer rating: 100% (QA)

Variable Cost 4000 2000 800000... View the full answer