Dilly LLC,wants to make a profit of $30,000.It has variable costs of $66 per unit and fixed costs of $20,000.How much must it charge per unit if 5,000 units are sold?

Question

Quizplus · Accepted Answer

To find the price per unit, use the formula: Price = (Fixed Costs + Desired Profit + (Variable Cost per Unit * Number of Units)) / Number of Units. Plugging in the values: Price = ($20,000 + $30,000 + ($66 * 5,000)) / 5,000 = $76.

Dilly LLC,wants to Make a Profit of $30,000