Return on Assets Pricing Method

In pricing products for an external market, the speaker discusses the return on assets pricing method.  The forumula used to calcuated the ROA is equal to:  Total cost per unit + Desired ROA% ( Assets Employed / # of Units ).  She mentions that the gross margin method of pricing typically yields a different price than the ROA pricing method.  A resource heavy project typically uses the return on assets pricing method as it takes into account the costs associated with the project.
 

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