CIMA Fundamentals of management accounting BA2 Question # 85 Topic 9 Discussion

CIMA Fundamentals of management accounting BA2 Question # 85 Topic 9 Discussion

BA2 Exam Topic 9 Question 85 Discussion:
Question #: 85
Topic #: 9

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:

BA2 Question 85

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


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