Marketing has forecast that at almost any reasonable price annual demand for a new product will be for 8,000 units. Production of this product will generate $12,000 per year in fixed costs, with a variable cost per unit of $4.50. At what minimum price would producing/selling this item become a profitable endeavor?
Answers:
A. Not in excess of $4.25
B. In excess of $4.25 but not in excess of $6.50
C. In excess of $6.50 but not in excess of $8.75
D. In excess of $8.75 but not in excess of $11.00
E. In excess of $11.00