Problem:
A company produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The Co. sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company is considering investing and that would decrease the variable cost per unit to $8 per unit and double total fixed costs. The company expects to increase production and sales to 9,000 units of product. What sales price would have to be charged to earn $90,000 target profit?