Fandry Company Has Obtained the Following Data Concerning a New

Multiple Choice

Fandry Company has obtained the following data concerning a new product:
$$\begin{array} { l l } \text { Production Costs, Using traditional costing method } & \$ 3.00 \text { per unit } \\\text { Production Costs, Using activity-based costing method } & \$ 5.00 \text { per unit } \\\text { Nonproduction Costs, Using activity-based costing method } & \$ 2.50 \text { per unit }\end{array}$$
Fandry Company wants the price of the new product to cover all costs plus a 100% markup.The production process used for the low volume product is very complicated and it has a higher proportion of indirect costs than direct costs.
What price per unit should Fandry Company charge for the new product?

A) $6.00
B) $10.00
C) $11.00
D) $15.00