Problem:
Tynex, Inc., a manufacturing company produces 80,000 units of product A at a total cost of $2.4 million. Total fixed costs are $1.4 million.
Requirement:
Question: If the company increases production by 25% and uses a 19% markup, the price per unit will be:
- $51.80
- $37.10
- $30.80
- $31.54
Note: Provide support for rationale.