Answer :
Blue corp. has fixed cost of $1797 per month and $9.28 per unit and company sells 411 units then minimum price of selling each unit to break even is $13.65.
As given in the question,
Blue corp. has:
Monthly fixed cost of units = $1797
Cost of per unit = $9.28
Total number of units sells by Blue corp. in a month = 411
Let C be the total cost as per given condition of fixed cost, per units charges and total units sells
C = 1797 + 9.28( 411)
⇒ C= 1797 + 3814.08
⇒ C = $5611.08
let 'x' be the minimum price of each unit for break even sells by Blue corp.
Then,
411x = $5611.08
⇒ x = 5611.08 /411
⇒ x= $13.65
Therefore, Blue corp. has fixed cost of $1797 per month and $9.28 per unit and company sells 411 units then minimum price of selling each unit to break even is $13.65.
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