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How much is the minimum price for the deal

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Problem - David Tan, sales director, of Pub's Toy Lid, negotiated with a new customer on the volume and selling price of its popular product - Monster Craz. David has been informed of the costs of manufacturing the product - variable production cost $15 each and fixed production overhead $4,000,000 for the expected volume between 40,000 units and 80,000 units. Selling and administrative variable and fixed expenses are $3 per unit and $40,000 for the same expected volume range. David expected to sell 50,000 units of Monster Craz. How much is the minimum price for the deal, if a minimum targeted profit of $500,000 is expected?

Reference no: EM132850959

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