The marketing manager of Rundle Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The production manager estimates the annual fixed costs of producing between 41,000 and 80,600 telephones would be $493,000.

Required

Assume that Rundle desires to earn a $118,000 profit from the phone sales. How much can Rundle afford to spend on variable cost per unit if production and sales equal 47,000 phones?

The marketing manager of Rundle Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The production manager estimates the annual fixed costs of producing between 41,000 and 80,600 telephones would be $493,000. Required Assume that Rundle desires to earn a $118,000 profit from the phone sales. How much can Rundle afford to spend on variable cost per unit it production and sales equal 47.000 phones