Question: Roxxon Inc. is considering a project that will have fixed costs of $15,000,000. Its sale price will be $41.50 per unit, and it will have

Roxxon Inc. is considering a project that will have fixed costs

Roxxon Inc. is considering a project that will have fixed costs of $15,000,000. Its sale price will be $41.50 per unit, and it will have a variable cost per unit of $10.75. Therefore, Roxxon Inc. has to sell 487,805 units to break even on this project Roxxon Inc.'s marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks that the demand for Roxxon Inc.'s product is relatively inelastic, so the firm can increase the sales price. Assuming that the firm can sell 150,000 units, what price must it set to break even? $105.21 $132.90 $110.75 $121.83

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