Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fruit Sushi Inc. produces 1 0 0 0 packages of fruit sushi per month. The sales price is $ 4 per pack. Variable cost is

Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $4 per
pack. Variable cost is $1.50 per unit, and fixed costs are $1700 per month. Management is
considering adding a chocolate coating to improve the value of the product by making it a
dessert item. The variable cost will increase from $1.50 to $1.90 per unit, and fixed costs
will increase by 20%. The CEO wants to price the new product at a level that will bring
operating income up to $3000 per month. What sales price should be charged? (Round your
answer to the nearest cent.)
$2.10
$6.94
$4.00
$2.50
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting And Financial Management For Construction Project Managers

Authors: Len Holm

1st Edition

1138550655, 978-1138550650

More Books

Students also viewed these Accounting questions