Curtis Company Anticipates Selling 10,000 Units Next Year
Curtis Company anticipates selling 10,000 units next year.The company wants to earn an operating income equal to 10% of sales.If variable expenses are $12 per unit,and fixed expenses total $78,000 per year,what selling price must be established to achieve the desired level of operating income?
A) $19.80 per unit.
B) $18.00 per unit.
C) $21.78 per unit.
D) $22.00 per unit.Selling Price = 220,000/10,000 = $22 per unit.