Question: Fruit Computer Company makes a fruit themed computer. Variable costs are $ 2 2 0 per unit, and fixed costs are $ 3 1 ,

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 $230 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 35%. Which sales price level would give the desired results? (Round your answer to the nearest cent.)
$990.00 per unit
$302.50 per unit
$297.50 per unit
$330.25 per unit

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