Question: 11. Istanbul company makes a product. Its basic products require $60 in variable costs and $4,000 per month in fixed costs. Istanbul sells 20 products
11. Istanbul company makes a product. Its basic products require $60 in variable costs and $4,000 per month in fixed costs. Istanbul sells 20 products per month. If the company further processes the product to enhance its functionality. It will require an additional $40 per unit of variable costs, plus an increase in fixed costs of $500 per month. The current sales price of the product is $280. The CEO wishes to improve operating income by $1,200 per month by selling the enhanced version of the product in order to meet this target, the sales price to be changed for the enhanced product is........ A. $405 per unit B. $380 per unit C. $280 per unit D. $320 per unit E. $125 per unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
