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.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

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