Seneca Company has invested $1,000,000 in a plant to make gas pumps for service stations. The...

  

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Seneca Company has invested $1,000,000 in a plant to make gas pumps for service stations. The average long - run income desired from the plant is $150,000 annually. The annual cost base for each pump is $1,000. What should be the prospective selling price for each pump if the company uses a target return on investment as the markup base? A. $2,500 B. $17,500 C. $16,000 D. $1,150 E. $17,000 Seneca Company has invested $1,000,000 in a plant to make gas pumps for service stations. The average long - run income desired from the plant is $150,000 annually. The annual cost base for each pump is $1,000. What should be the prospective selling price for each pump if the company uses a target return on investment as the markup base? A. $2,500 B. $17,500 C. $16,000 D. $1,150 E. $17,000