Remington, Inc., manufactures a single product. The variable cost per unit for the product is $5.
Required
The controller at Remington likes to ask unexpected questions during meetings with her accounting staff to ensure they are awake. At the last meeting, she asked you the following question. "At the current price we charge for our product, we can compute a break-even quantity. If we cut the price in half, the new break-even point would be three times the break-even point at the current price. What is the current price?"