Matrix, Inc. currently has sales of $39,600, variable costs of $28,730, and ﬁxed costs of $8,280. If the company installs a new piece of equipment, the variable costs are expected to increase to
$34,970 and the number of units produced will increase from 2,800 to 4,100. What is the minimum
Price the company can accept for each of the additional units if they want to maintain their current
Level of net income?
A) $1.52
B) $4.80
C) $5.73
D) $6.82
E) $10.55

Question

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The Answer of Matrix, Inc. currently has sales of $39,600, variable costs of $28,730, and ﬁxed costs of $8,280. If the company installs a new piece of equipment, the variable costs are expected to increase to
$34,970 and the number of units produced will increase from 2,800 to 4,100. What is the minimum
Price the company can accept for each of the additional units if they want to maintain their current
Level of net income?
A) $1.52
B) $4.80
C) $5.73
D) $6.82
E) $10.55