Produces and sells bicycles

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Reference no: EM132041806

Smith Inc. produces and sells bicycles. They are expecting to sell 235,000 units this year. Their variable costs are $85 per unit and their fixed costs are $1,250,000.

a) If they would like to earn 35% per unit, at what price should they sell the bicycles?

b) What price should they set to earn 35% if the fixed costs were $1,100,000?

c) What if the fixed costs were $1,100,000 and they wanted to earn 42% per unit?

Reference no: EM132041806

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