Sutton Products is a price - setter that uses the cost - plus pricing approach. The products are specialty vacuum tubes used insound equipment. The CEO is certain that the company can produce and sell 320,000 units per year, due to the high demand forthe product. Variable costs are $2.40 per unit. Total fixed costs are $970,000 per year. The CEO will receive stock options if$100,000 of operating income for the year is reported. What sales price would allow the CEO to achieve the target if thecost-plus pricing method is used? (Round your answer to the nearest cent.)A. $3.34 per unitB. $5.74 per unitOC. $2.40 per unitD. $5.12 per unit...

Selling price per unit is the price at which each unit of product is sold. It is the per unit…

Answered: Sutton Products is a price - setter…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 54P

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