O$371.30 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per
unit, and fixed costs are $31,000 per month. Fruit Computer Company sells 500 units
per month at a sales price of $320. The company believes that it can increase the price if
the computer quality is upgraded. If so, the variable cost will increase to $230 per unit,
and the fixed costs will rise by 25%. The CEO wishes to increase the company's
operating income by 10%. Which sales price level would give the desired results? (Round
your answer to the nearest cent.)
O $371.30 per unit
O $262.00 per unit
O $378.00 per unit.
O $1056.00 per unit
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