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2. The total annual fixed costs of Transatlantic Ltd is $100,000 and the total variable cost per unit of its production is $33 Required: 1.

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2. The total annual fixed costs of Transatlantic Ltd is $100,000 and the total variable cost per unit of its production is $33 Required: 1. If only 5000 units is all that is expected to sell to customers this year what should the per unit selling price be to make a 25% profit this year (2 marks) ii. If the foreign sales of 3000 units per year is to be added to the 5000 units government contract above and a 25% profit is acceptable for this contractor again, what could be the new selling price per unit (2 marks) Class comments

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