The product design team of Steed Motors is in the process of designing a new 20 dirt bike. The company estimates that variable costs will be $80 per unit and fixed costs will be $120,000 per year. Suppose the company wants to set its price equal to full cost plus 25% and it estimates that it can sell 4,000 units. What price will the company set?

Group of answer choices

$107.50

$110.00

$137.50

$140.00

uct design team of Steed Motors is in the process of designing a new 20 dirt bike. The company estimates that variable costs will be $80 per unit and fixed costs will be $120,000 per year. Suppose the company wants to set its price equal to full cost plus 25% and it estimates that it can sell 4,000 units. What price will the company set?

Group of answer choices

$107.50

$110.00

$137.50

$140.00