What is the target variable cost per mouse

Reference no: EM13130580

A company believes it can sell 5,000,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?

$11.00

$10.60

$9.00

$9.40

Reference no: EM13130580

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