Smith Inc. produces and sells bicycles. They are expecting to sell 220,000 units this year.

Their variable costs are $74 per unit and their fixed costs are $767,000.

a. If they would like to earn 23% per unit, at what price should they sell the

bicycles?

b. What price should they set to earn 23% if the fixed costs were $2,100,000?

c. What if the fixed costs were $2,100,000 and they want to earn 38% per unit?