Fox Company believes that a market exists for an electronic game with a sales price of $40 per unit.The annual fixed costs are estimated at $700,000.
Required:
Fox forecasts sales of 50,000 units and wants to earn a profit of $200,000 per year.What is the maximum amount of variable costs per unit that will allow it to achieve its profit goal?

Question

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The Answer of Fox Company believes that a market exists for an electronic game with a sales price of $40 per unit.The annual fixed costs are estimated at $700,000.
Required:
Fox forecasts sales of 50,000 units and wants to earn a profit of $200,000 per year.What is the maximum amount of variable costs per unit that will allow it to achieve its profit goal?

Fox Company Believes That a Market Exists for an Electronic