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A company has an opportunity to make a bulk sale that would not impact regular sales or total fixed expenses. The variable cost per unit is $11 and the company desires a total profit of $4,500. The quoted selling price per unit for 500 units should be __________ $

Sagot :

The quoted selling price per unit for 500 units should be $20.

What should be the quoted selling price per unit?

Profit is total revenue less total selling price.

Profit = total revenue - total cost

$4500 = 500(t - $11)

Where t represents the selling price per unit

$4500 / 500 = t - 11

$9 = t  - 11

t = 11 + 9 = $20

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