In 2022, a company estimates that $500,000 will be spent to produce a new product. If the company expects to sell 200,000 units, by how much should each unit of the new product be sold if the company wishes to make $100,000 profit and the cost of producing each unit is $4?

In 2022, a company estimates that $500,000 will be spent to produce a new product. If the company expects to sell 200,000 units, by how much should each unit of the new product be sold if the company wishes to make $100,000 profit and the cost of producing each unit is $4?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In 2022, a company estimates that $500,000 will
be spent to produce a new product. If the
company expects to sell 200,000 units, by how
much should each unit of the new product be
sold if the company wishes to make $100,000
profit and the cost of producing each unit is $4?

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