X Company makes and sells a single product In 2014 it sold 2

X Company makes and sells a single product. In 2014, it sold 25,500 units and profits were $190,000. In 2015, the company expects to sell 27,500 units, variable costs per unit are expected to be $27.40, and total fixed costs are expected to be $180,000. What must the selling price be in 2015 for X Company profits to be the same as they were in 2014?

Solution

The Selling Price must be $13.45+ $27.40

$40.85

As we can add the Total Cost and Profit from last year, and then we can find profit value per unit. Then we can find the Selling price.