Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed

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 10%. The CEO wants to price the new product at a level that will bring operating income up to $4000 per month. What sales price should be charged? (Round your answer to the nearest cent.) $4.00 $2.10 O $7.77 $2.50

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

College Accounting

Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille

11th edition

978-1111528300, 1111528128, 1111528306, 978-1111528126

More Books

Students also viewed these Accounting questions