At what minimum price would producing or selling this item

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Reference no: EM13390177

Marketing has forecast that at almost any reasonable price annual demand for a new product will be for 8,000 units. Production of this product will generate $12,000 per year in fixed costs, with a variable cost per unit of $4.50. At what minimum price would producing/selling this item become a profitable endeavor?

Answers:

A. Not in excess of $4.25

B. In excess of $4.25 but not in excess of $6.50

C. In excess of $6.50 but not in excess of $8.75

D. In excess of $8.75 but not in excess of $11.00

E. In excess of $11.00

Reference no: EM13390177

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