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Use the Following Information to Answer the Following Questions

Question 54

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Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:
Use the following information to answer the following Questions Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:   The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.  -What price must Longwood charge if the company uses cost-plus pricing based on total cost? A)  $868. B)  $900. C)  $1,000. D)  $1,192. E)  None of the answers is correct.
The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total cost?


A) $868.
B) $900.
C) $1,000.
D) $1,192.
E) None of the answers is correct.

Correct Answer:

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