Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kitchen Korner competes with Sur Le Table for sales of quality kitchen knives. Kitchen Korner currently sells 22,000 knives per month for $40 each. The
Kitchen Korner competes with Sur Le Table for sales of quality kitchen knives. Kitchen Korner currently sells 22,000 knives per month for $40 each. The variable cost per knife is $20, and fixed costs are $300,000. Kitchen Korner is considering increasing the price of its knives to $60 each. If the price is changed, how many knives will Kitchen Korner need to sell for profit to remain the same as before the price change?
A. 14,667
B. 13,500
C. 17,600
D. 11,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started