Afford to spend on the variable cost per unit

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After substantial marketing research, toyaun corporation management beleives it can make and sell a new battery with a prolonged life for a laptop computer. Managemet expects the demand to be 50,000 units a year if the batteries are priced at $80 per unit. A team of engineers and accountants determine that the fixed cost of producing 35000 units to 65000 units is 1,250,000

A. ASSUME THAT TOYAUN DESIRES TO EARN $750,000 profit from the battery sales how much can it afford to spend on the variable cost per unit if the production and sales equal 50,000 batteries.

Reference no: EM131255243

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