Price to Charge for $90,000 ProfitA company produces and sells 4,000 units of a product that
has a contribution margin of $6 per unit. The Co. sells the product for a sales
price of $20 per unit.Fixed costs are $18,000. The company is considering
investing and that would decrease the variable cost per unit to $8 per unit and
double total fixed costs.
The company expects to increase production and sales to
9,000 units of product. What sales price would have to be charged to earn
$90,000 target profit?
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