Respuesta :
Answer:
The selling price per unit is $35
Explanation:
In computing the selling price for each of the expected units produced and sold each year of 14,000 units,the total production cost is added to the administrative expenses as well as the return on investment i.e 12% of $750,000.
Product cost($25*14000) $350,000
selling and administrative expenses $50,000
Total cost $400,000
return on investment(12%*$750,000) $90,000
Total sales value $490,000
selling price per unit=sales value/units sold=$490,000/14000=$35
The established selling price per unit is $35
