Answer:
$7.57
Explanation:
Return on investment (ROI) = Net profit/Investment = 14%
Net profit/$1,300,000 = 14%
Net profit = $1,300,000 × 14% = $182,000
Total costs = Variable costs + Fixed costs = $125,000 + $450,000 = $575,000
Total revenue = Total costs + Net profit = $575,000 + $182,000 = $757,000
Target selling price = Total revenue/Units produced and sold = $757,000/100,000 = $7.57