Reference no: EM133160499
Question - Fatou, Director of Division A, has full autonomy to make decisions involving better management of costs and investments. The following data concerns the operations of Division A for the year 2021:
Average cash balance: $800,000
Average net fixed assets: $10,800,000
Average balance of accumulated depreciation of fixed assets: $4,200,000
Average balance of trade receivables: $2,000,000
Average balance of deferred revenue: $500,000
Average raw material inventory balance: $750,000
Average finished goods inventory balance: $650,000
Average balance of taxes payable: $100,000
Total annual fixed cost: $7,000,000
Variable cost per unit: $60
Sales volume: 220,000 units
The company is promoting Fatou if she had achieved a 12% return on investment in 2021. What would the unit sales price have to be in 2021 to get the promotion?
a) No answer is appropriate
b) 102.29 $
c) 100.27 $
d) 100.32 $
e) 100 $