SOLUTION: A product currently sells for $12 per unit. The variable cost are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will in

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: A product currently sells for $12 per unit. The variable cost are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will in      Log On


   

Question 732256: A product currently sells for $12 per unit. The variable cost are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable cost by %20 and Fixed Costs by %10 but sales will increase to 12000 units per year.
A. At what selling price do we break even, and
B. If the selling price is to be kept same ($12/unit) what will the annual profit be?
Answer by lynnlo(4176) About Me  (Show Source):