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 24% and fixed cost by 13% but sales will increase to 12490 units per year. At what selling price do the break even occurs for the new design? complete solution needed
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 24% and fixed cost by 13% but sales will increase to 12490 units per year. At what selling price do the break even occurs for the new design? complete solution needed
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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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 24% and fixed cost by 13% but sales will increase to 12490 units per year. At what selling price do the break even occurs for the new design?
complete solution needed
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