XYZ, inc. makes and sells bicycle parts. Last year XYZ sold 5,900 handlebars, generating sales of $100,000. This year they are considering a new pricing strategy with a target profit goal of $17,000. They determined that for every $2 increase to the selling price, a 200 decrease in unit sales was expected. Their total costs were $110,000 with fixed costs accounting for $62,000. This year, XYZ, inc. is considering changing the selling price to $26.

What is XYZ's average contribution margin ($) per unit?

CALCULATED VARIABLES:

vc = $8.14

asp = $16.95