Answer:
The projected sales price is $46.21 per unit
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable cost per unit)
Selling price per unit = (Fixed expense/Break-even point in units) + Variable cost per unit)
The project has an accounting break-even point of 2,962 units.
The depreciation expense is $22,147 and The fixed costs are $46,308. The depreciation expense is fixed cost.
Total Fixed expense = $22,147 + $46,308 = $68,455
Selling price per unit = ($68,455/2,962) + $23.10 = $46.21 per unit
