Texas Products Inc. has a division which makes burlap bags for the citrus industry. The unit has operating fixed costs of $10,000 per month, and it expects to sell 42,000 bags per month. If the variable cost per bag is $2.00, what price must the division charge in order to break even?

$2.23809

Explanation:

As we know that

In order to break even, the sales revenues = Fixed costs + Variable costs.

So we assume the sales units be X

Sales price per unit × Units = Fixed costs + Variable cost per unit × Unit

X × 42,000 bags = $10,000 + $2.0 × 42,000

X × 42,000 = $10,000 + $84,000

X × 42,000 = $94,000

So, X equals to

= $94,000 ÷ 42,000

= $2.23809

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer; /// i believe the correct answer is ( column break);