ATCE Learning Center wants to make a net profit of $650,000 on the manual it sells to schools. The fixed costs for producing the
manual are $780,000 and the variable cost per package is $19.85. If the estimated unit sales are 1,250,000 units, what selling price per unit should ATCE try? $31.29
We are to solve for the price per unit. Let "x" be the price per unit. The given values are the following: Variable Cost = 1250,000 *x Fixed Cost = $780,000 Net Profit = $650,000 Variable cost per unit = $19.85
The solution is shown below: $650,000 = 1,250,000*x - $780,000 - $1,250,000*$19.85 x = $26, 242, 500 / 1,250,000 units x = $20.994
The price per unit is $20.99 and the answer is letter "D".
