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How much would Spencer have to charge for the product

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Reference no: EM132871785

Problem - Spencer Inc. manufactures a product that costs $26 per unit plus $38,000 In fixed costs each month. Spencer currently sells 1,400 of these units per month for $51 each. If Spencer leased a machine for $14,000 a month, it could add features to the product that would allow it to sell for $87 each. It would cost an additional $16 per unit to add these features. How much would Spencer have to charge for the product with additional features to make it worthwhile to lease the machine?

Reference no: EM132871785

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