Question: A new product is being considered that will require $45,000 in fixed costs per year. Variable costs per unit are estimated to be $12.72. The

  1. A new product is being considered that will require $45,000 in fixed costs per year. Variable costs per unit are estimated to be $12.72. The firm wants to break even if 8000 units are produced and sold per year. What should be the price?

A) Less than $16.00

B) Between $16.00 and $16.99

C) Between $17.00 and $17.99

D) Between $18.00 and $18.99

Answer: D

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