Newton Company currently produces and sells $5,000$ units of a product that has a contribution margin of $$8$ per unit. The company sells the product for a sales

price of $$23$ per unit. Fixed costs are $$25,000.$ The company is considering investing in new technology that would decrease the variable cost per unit to $$12$

per unit and double total fixed costs. The company expects the new technology to increase production and sales to $10,000$ units of product. What sales price

would have to be charged to earn a $$90,000$ target profit assuming the investment in technology is made?

Multiple Choice

$$12$

$$26$

$$23$

$$18$