Dilly LLC, wants to make a profit of $30,000. It has variable costs of $99 per unit and fixed costs of $20,000. How much must it charge per unit if 5,000 units are sold?
A) $84
B) $69
C) $99
D) $109

Question

Quizplus · Accepted Answer

To find the price per unit, use the formula: Price = (Fixed Costs + Desired Profit) / Number of Units + Variable Cost per Unit. Here, Price = ($20,000 + $30,000) / 5,000 + $99 = $109.

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