Question: Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $32,000 per monthFruit Computer Company sells 500 units

Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are \$32,000 per monthFruit Computer Company sells 500 units per month at a sales price of $320. 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 unitand the fixed costs will rise by 50%. The CEO wishes to increase the company's operating income by 20%. Which sales price level would give the desired results? (Round your answer to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Fruit Computer Company makes a fruit themed computer. Variable costs are $ 2 2 0 per unit, and fixed costs are $ 3 1 , 0 0 0 per month. Fruit Computer Company sells 4 0 0 units per month at a sales...

Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $30,000 per month. Fruit Computer Company sells 500 units per month at a sales price of...

question 1 Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $31,000 per month. Fruit Computer Company sells 500 units per month at a sales...

Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $32,000 per month. Fruit Computer Company sells 500 units per month at a sales price of...

Fruit Computer Company makes a fruit themed computer. Variable costs are $ 2 0 0 per unit, and fixed costs are $ 3 2 , 0 0 0 per month. Fruit Computer Company sells 5 0 0 units per month at a sales...

Fruit Computer Company makes a fruit themed computer. Variable costs are $ 2 0 0 per unit, and fixed costs are $ 3 1 , 0 0 0 per month. Fruit Computer Company sells 5 0 0 units per month at a sales...

Question 10 1 pts Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $30,000 per month. Fruit Computer Company sells 400 units per month at a...

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...

Fruit Computer Company makes a fruit themed computer. Variable costs are $220 per unit, and fixed costs are $31,000 per month. Fruit Computer Company sells 500 units per month at a sales price of...

Homes in a community served by a utility company annually use an expected 12,000 kilowatt-hours (kWh) of electricity. The same utility supplies natural gas to these homes, with an annual expected use...

How the roles and functions HRD specialist/technology can support the success of the management?

12. Distinguish between online and off-line control of quality.

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

10-18 Do you think Zagats decision to use a pay wall for its Web site was a mistake? Why or why not? Founded by Tim and Nina Zagat, the Zagat Survey has collected and published ratings of restaurants...

Explain the origins of human resources (HR) and their development over the last 100 years.

10-17 Why was Zagats content well suited for the Web and for the mobile digital platform? Founded by Tim and Nina Zagat, the Zagat Survey has collected and published ratings of restaurants by diners...