Clear Water Solutions sells a specialized water filter that has a variable cost of $12 each. Fixed costs are estimated to be $500,000 across all levels of sales shown below. Which price should Clear Water Solutions charge to maximize profits? Units Sold Unit Price CM per unit x Qty Fixed Costs Profit 80,000 $40 $28 $500,000 ? 90,000 $38 $30 $500,000 ? 100,000 $36 $32 $500,000 ? 110,000 $34 $34 $500,000 ?

Clear Water Solutions sells a specialized water filter that has a variable cost of $12 each. Fixed costs are estimated to be $500,000 across all levels of sales shown below. Which price should Clear Water Solutions charge to maximize profits? Units Sold Unit Price CM per unit x Qty Fixed Costs Profit 80,000 $40 $28 $500,000 ? 90,000 $38 $30 $500,000 ? 100,000 $36 $32 $500,000 ? 110,000 $34 $34 $500,000 ?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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