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Blue Mouse Manufacturers is considering a project that will have fixed costs of $15,000,000. The product will be sold for $32.50 per unit, and will
Blue Mouse Manufacturers is considering a project that will have fixed costs of $15,000,000. The product will be sold for $32.50 per unit, and will incur a variable cost of $10.75 per unit. Given Blue Mouse's cost structure, it will have to sell units to break even on this project (QBE). Blue Mouse Manufacturers's marketing sales director doesn't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $20,000,000. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks the demand for Blue Mouse Manufacturers's product is relatively Inelastic, so the firm can increase the sale price. Assuming that the firm can sell 200,000 units, what price must it set to meet the CFO's EBIT goal of $20,000,000 ? \$232.19 per unit $185.75 per unit $213.61 per unit \$195.04 per unit What affects the firm's operating break-even polnt
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