Magpie corporation uses the total cost concept of product pricing. below is the cost information for the production and sale of 58,700 units of its sole product. magpie desires a profit equal to a 21% rate of return on invested assets of $605,000. fixed factory overhead $38,500 fixed selling and administrative 8,000 variable direct materials cost per 5.17 variable direct labor cost per .88 variable factory overhead cost per .13 variable selling and administrative cost per 4.50 the dollar amount of desired profit from the production and sale of the company's product is: a. $12.11b. $12.88c. $15d. $13.50

Correct answer is C. $ dollars.

Calculation:

Rate of Retun PU = (21%*605,000)/58,700 = 2.16

Fixed factory overhead PU = 38,500/58,700 = 0.66

Fixed selling and administration PU=  8000/58,700 = 0.14

Variable DM PU = 5.17

Variable Labour PU = 1.88

Variable FOH PU = 1.33

Variable selling and Admin PU  = 4.5

By adding all above mentioned per unit cost we get 15 dollars aprox

so

Correct answer is 15 dollar.

ok this has nothing to do with business

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.