Delish foods sells jars of special spices used in italian cooking. the variable cost is $2 per unit. fixed costs are $9,000,000 per year. it has $42,000,000 of average assets, and the desired profit is a 5% return on assets. delish foods sells 5,000,000 units per year. the company uses cost-plus pricing because it is the only company that produces this kind of product. using cost-plus pricing methodology, determine the sales price per unit. (round your answer to the nearest cent.) select one: o a. $3.80 b. $2.40 o c. $2.00 d. $4.22

$3.38 per unit

Explanation:

Total costs:

= Total fixed cost + Total variable cost

= $9,000,000 + (5,000,000 units × $2 per unit)

= $9,000,000 + $10,000,000

= $19,000,000

Target revenue:

= Total costs - Desired profit

= $19,000,000 - ($42,000,000 × 5%)

= $19,000,000 - $2,100,000

= $16,900,000

Sales price per unit = Target revenue ÷ Total units

                                = $16,900,000 ÷ 5,000,000

                                = $3.38 per unit

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20