When making a location decision at the country level, which of these would be considered? a. land/construction costs b. location of markets c. air, rail, highway, waterway systems d. corporate desires e. zoning restri?

b. $170

Explanation:

The computation of target selling price per pair of shoes is shown below:-

Return on investment =  $1,700,000 × 30%

= $510,000

Total variable cost = Variable manufacturing costs + Variable selling and administrative costs

= $40,000 + $20,000

= $60,000

Variable cost per unit = Total variable cost ÷ Planned production and sales

= $60,000 ÷ 5,000

= $12

Total Fixed cost = Fixed manufacturing costs + Fixed selling and administrative costs

= $160,000 + $120,000

= $280,000

Target profit = Total Contribution - Fixed cost

Total Contribution = Return on investment + Total Fixed cost

= $510,000 + $280,000

= $790,000

Contribution per unit = Total Contribution ÷Planned production and sales

= $790,000 ÷ 5000

= $158

So, Selling price per unit = Contribution per unit + Variable cost per unit

= $158 + $12

= $170

Therefore for computing the the selling price per unit we simply applied the above formula.