A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product’s life will be 5,000 units.
The forecast costs per unit throughout the product’s life are as follows:
The product is required to earn a return on investment of 35%.
What unit selling price needs to be achieved?
A . $54.00
B . $50.77
C . $47.00
D . $44.55
Answer: D