Titan Metalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan has $10,000,000 of assets and shareholders expect approximately a 7% return on assets. Assume all products produced are sold. Additional data are as follows: units per year per unit per year Using the cost-plus pricing approach, what should be the sales price per unit? (Round your answer to the nearest cent.) Sales volume Variable costs Fixed costs A. $16.00 OB. $21.50 OC. $1.75 400,000 $16 $1,500,000 D. $19.75 (...)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Titan Metalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan
has $10,000,000 of assets and shareholders expect approximately a 7% return on assets. Assume all products produced are sold.
Additional data are as follows:
units per year
per unit
per year
Using the cost-plus pricing approach, what should be the sales price per unit? (Round your answer to the nearest cent.)
Sales volume
Variable costs
Fixed costs
400,000
$16
$1,500,000
A. $16.00
OB. $21.50
OC. $1.75
OD. $19.75
(...)
Transcribed Image Text:Titan Metalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan has $10,000,000 of assets and shareholders expect approximately a 7% return on assets. Assume all products produced are sold. Additional data are as follows: units per year per unit per year Using the cost-plus pricing approach, what should be the sales price per unit? (Round your answer to the nearest cent.) Sales volume Variable costs Fixed costs 400,000 $16 $1,500,000 A. $16.00 OB. $21.50 OC. $1.75 OD. $19.75 (...)
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