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What price do charge for black units and white units

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Reference no: EM132509780

Question 1: How do calculate the break even price to charge for the following:

total units is 400,000

70% of the units are black and 10% are white

variable cost is $0.80 per unit

fixed costs are $3,950,000

advertising for black units is $250,000 and $260,000 for white units.

white units will sell for 60% of the price of black units.

Question 2: What price do charge for black units and white units in order to break even?

Reference no: EM132509780

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