Question: #10 Fruit Computer Company makes a fruit themed computer. Variable costs are $220 per unit, and fixed costs are $32,000 per month. Fruit Computer Company

#10

Fruit Computer Company makes a fruit themed computer. Variable costs are $220 per unit, and fixed costs are $32,000 per month. Fruit Computer Company sells 500 units per month at a sales price of $300. The company believes that it can increase the price if the computer quality is upgraded. If so, the variable cost will increase to $240 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 35%. Which sales price level would give the desired results? (Round your answer to the nearest cent.) $316.00 per unit $284.00 per unit $341.60 per unit $1020.00 per unit

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