Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

Multiple Choice

Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000. The dollar amount of desired profit from the production and sale of the company's product is:

A) $89,600
B) $39,200
C) $70,000
D) $84,000