Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,0 per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year At what selling price do the break even occurs for the new design? (A) none of the above B) 7.64 10.12

Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,0 per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year At what selling price do the break even occurs for the new design? (A) none of the above B) 7.64 10.12

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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