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Indigo Machine and Tools currently prices its hammers at $13 per unit. The corresponding unit variable cost is $6 and the unit fixed cost is
Indigo Machine and Tools currently prices its hammers at $13 per unit. The corresponding unit variable cost is $6 and the unit fixed cost is $2 per when 9800 hammers are produced and sold. Indigo is considering increasing the price of its hammers to $16.25 since its suppliers have increased the cost of the materials used in production which has caused the unit variable cost to increase to $7. What is Indigo's projected operating income with the new unit selling price and new unit variable cost if it is only able to produce and sell 9300 hammers? $49000 $58800 $66425 $86025
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