Real Products Company
Real Products Company produces and sells a single product.Information on its costs follow:
$\begin{array}{l}
\text { Variable costs: }\
\begin{array}{lr}
\text { SG\&A } & \$ 2 \text { per unit } \
\text { Prochuction } & \$ 4 \text { per unit } \
\text { Fixed costs: } & \
\text { SG\&A } & \$ 12,000 \text { per year } \
\text { Prochuction } & \$ 15,000 \text { per year }
\end{array}
\end{array}$
Refer to Real Products Company.Assume Real Products Company produced and sold 5,000 units.At this level of activity,it produced a profit of $18,000.What was Real Products Company's sales price per unit?
A)$15.00
B)$11.40
C)$9.60
D)$10.00

Question

Quizplus · Accepted Answer

To find the sales price per unit, calculate total costs and add profit, then divide by units sold. Total variable cost = ($2 + $4) * 5,000 = $30,000. Total fixed cost = $12,000 + $15,000 = $27,000. Total cost = $30,000 + $27,000 = $57,000. Total revenue = Total cost + Profit = $57,000 + $18,000 = $75,000. Sales price per unit = $75,000 / 5,000 = $15.00.

Real Products Company Real Products Company Produces and Sells a Single

Real Products Company
Real Products Company Produces and Sells a Single