The Marketing manager of Vernon Corporation has determined that a market exists for a telephone With a sales price of $20 per unit. The production manager estimates the annual fixed costs off producing between 40,700 and 81,000 telephones would be $$206,000

The marketing manager of Vernon Corporation has determined that a market exists for a telephone with a sales price of $20 per unit. The production manager estimates the annual fixed costs of producing between 40,700 and 81,000 telephones would be $206,000. Required Assume that Vernon desires to earn a $116,000 profit from the phone sales. How much can Vernon afford to spend on variable cost per unit if production and sales equal 46,000 phones? Variable cost per unit