Speak Louder manufactures and sells smartphones. The newly developed smartphone Rudioso promises to be an instant commercial success. Thus, Speak Louder expects monthly sales of 36,000 units. The fixed costs of producing and marketing the smartphone are $1,080,000 per month. The selling price per unit is $840 and variable costs are $690 per unit.

a) What price per unit is to be charged, if 12,000 units are produced and the firm wishes to achieve a sales profitability of 25%?

Note: the teacher said the answer is 1,04, why is that?