Question: 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
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 400 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 30%. Which sales price level would give the desired results? (Round your answer to the nearest cent.) $1020.00 per unit $297.50 per unit $302.50 per unit $340.13 per unit
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