Final answer:
The correct answer to determine the selling price per unit under the cost-plus pricing method is cost per unit + markup per unit. This method ensures that all costs are covered and a profit margin is included.
Step-by-step explanation:
The formula to determine the selling price per unit under the cost-plus pricing method is cost per unit + markup per unit. This method involves calculating the total cost per unit of producing a product and then adding a markup to achieve a desired profit. For instance, if the cost per unit is $22 and the company wants to add a markup of $8 per unit, the selling price would be $30 per unit.
Cost-plus pricing ensures that all costs, both fixed and variable, are covered and that a profit margin is achieved on each product sold. It is a straightforward approach to pricing that is particularly useful when costs are relatively stable and the markup can be predicted accurately.