Use this information for Dotterel Corporation to answer the questions that follow. Dotterel Corporation...
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Use this information for Dotterel Corporation to answer the questions that follow.
Dotterel Corporation uses the variable cost concept of product pricing. The cost information for the production and sale of 35,000 units of its sole product follows. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000.
| Fixed factory overhead cost | $105,000 |
| Fixed selling and administrative costs | 35,000 |
| Variable direct materials cost per unit | 4.34 |
| Variable direct labor cost per unit | 5.18 |
| Variable factory overhead cost per unit | 0.98 |
| Variable selling and administrative cost per unit | 0.70 |
The dollar amount of the desired profit from the production and sale of the company's product is
| a. | $89,600 | |
| b. | $84,000 | |
| c. | $39,200 | |
| d. | $70,000 |
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