After substantial marketing research, Ewing Corporation management believes that it can make and sell a new battery

Question:

After substantial marketing research, Ewing Corporation management believes that it can make and sell a new battery with a prolonged life for laptop computers. Management expects the market demand for its new battery to be 12,000 units per year if the battery is priced at $90 per unit. A team of engineers and accountants determines that the fixed costs of producing 8,000 units to 16,000 units is $480,000.

Required

Assume that Ewing desires to earn a $240,000 profit from the battery sales. How much can it afford to spend on the variable cost per unit if production and sales equal 12,000 batteries?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...