Module: Pricing $1$: Linear Demand $/$ Problem Set ID: $1045$

XYZ$,$ inc. makes and sells bicycle parts. Last year XYZ sold $5,200$ handlebars, generating sales of $$110,000.$ This year they are considering a new pricing strategy with a target profit goal of $$15,000.$ They determined that for every $$3$ increase to the selling price, a $200$ decrease in unit sales was expected. Their total costs were $$100,000$ with fixed costs accounting for $$68,000.$ This year, XYZ $,$ inc. is considering changing the selling price to $$28.$

What are XYZ$\text{'}$s average unit variable costs?

Trem

$$

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$0\mathrm{.}00$

dollars