What price per unit should be quoted to the distributor

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Question: Richmond industries has sales of 1125 units per month at a selling price of 500. Variable expenses are 150 per unit and fixed expenses are 167,000. Richmond has an opportunity to sell an additional 370 units to a foreign distributor. If Richmond desires an additional profit of 71,040. What price per unit should be quoted to the distributor? Assume that existing sales will not be affected

A.192

B. 342

C. 312

D. 392

E. none of above

Reference no: EM131761670

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