Question: 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

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 $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 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.) O $260.00 per unit O $378.00 per unit O $340.00 per unit O $1020.00 per unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
