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Askew Enterprises produces a product with fixed costs of $200,000 and variable cost of $9 per unit. The company desires to earn a $100,000 profit and believes it can sell 20,000 units of the product. Required
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12 votes
12 votes
Askew Enterprises produces a product with fixed costs of $200,000 and variable cost of $9 per unit. The company desires to earn a $100,000 profit and believes it can sell 20,000 units of the product. Required a. Based on this information, determine the target sales price.

User Dmitriy Mozgovoy
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1 Answer

8 votes
8 votes

Answer:$24

Step-by-step explanation:

Formula : Sales - Variable costs - Fixed costs = profit

x(20,000) - $180,000-$200,000 = $100,000,

x(20,000) = $480000

x = $24

User Bojan Rajkovic
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