Question

What price increase would be required to cover the increase in cost of hiring the press if unit volume (copies per issue) remain the same and Kai maintains the same profit goal?

Answer 1

$0.22 per unit.

Step-by-step explanation:

The additional Fixed cost of hiring the press is $103. This additional fixed cost should be covered by the unit volume. The unit volume that is sold is 458 copies. The additional fixed cost should be divided in the each copy sold to reach to the addition to current selling price.

$103 / 458 = $0.22

The selling price should be increased by $0.22 per copy.