Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,0 per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year At what selling price do the break even occurs for the new design? (A) none of the above B) 7.64 10.12
Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,0 per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year At what selling price do the break even occurs for the new design? (A) none of the above B) 7.64 10.12
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000
per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year.
At what selling price do the break even occurs for the new design?
(A) none of the above
B 7.64
D
10.12
9.38](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd11c38f-1f26-4061-af99-66c6cca980fd%2F6e772b1f-d453-446f-aa4d-fca2cfcbaa5b%2F2c8k6ih_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000
per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year.
At what selling price do the break even occurs for the new design?
(A) none of the above
B 7.64
D
10.12
9.38
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