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The manager of Kzoo, Inc. is considering raising its current price of $35 per unit by 10%. If she does so, she estimates that demand
The manager of Kzoo, Inc. is considering raising its current price of $35 per unit by 10%. If she does so, she estimates that demand will decrease by 20,000 units per month. Kzoo currently sells 51,700 units per month, each of which costs $20 in variable costs. Fixed costs are $190,000. a. What is the current profit? Current Profit $ 585,500 b. What is the current break-even point in units? (Round your answer to the nearest whole number.) Break-Even Point 12,667 units c. If the manager raises the price, will profit be? (Do not round intermediate calculations.) Target Profit d. If the manager raises the price, what will be the new break-even point in units? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Target Break-Even Point units
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