The Marietta Company has fixed costs of $75,000 and variable costs are 75% of the selling price. To realize operating income of $10,000 from sales of 80,000 units, the selling price per unit ________. (Round the answer to the nearest cent.)
A) must be $1.06
B) must be $1.42
C) must be $4.25
D) must be $3.75

Question

Quizplus · Accepted Answer

Breakeven sales = ($75,000 + $10,000) / 0.25 = $340,000
Selling price = $340,000 / 80,000 units = $4.25 per unit

The Marietta Company Has Fixed Costs of $75,000 and Variable