Answer:
Selling price= $9.3 per unit
Explanation:
Giving the following information:
Baird Enterprises produces a product with fixed costs of $34,000 and a variable cost of $3.60 per unit. The company desires to earn a $23,000 profit and believes it can sell 10,000 units of the product.
To calculate the selling price, we need to use the break-even point formula:
Break-even point= (fixed costs + desired profit)/ contribution margin
10,000= (34,000 + 23,000) / (selling price - 3.6)
10,000X - 36,000= 57,000
10,000X= 93,000
X= $9.3 per unit
