A product currently sells for S12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by % 20 and Fixed Costs by % 10 but sales will increase to 12,000 units per year. At what selling price do we break even?

A product currently sells for S12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by % 20 and Fixed Costs by % 10 but sales will increase to 12,000 units per year. At what selling price do we break even?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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