Chile's, Inc. currently produces and sells 4,000 units of a product with a contribution margin of $6 per unit. The company sells the product at a retail price of $20 per unit. Fixed costs are $18,000. The company is considering investing in new technology that will reduce variable cost per unit to $8 per unit and increase fixed costs to $33,000. The company expects the new technology to increase production and sales to 9,000 products. What selling price would need to be taken to achieve a target profit of $93,000?

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Solution Sales Quantity 9000 units Variable Co... View the full answer