Matrix, Inc

Multiple Choice

Matrix, Inc. currently has sales of $39,600, variable costs of $28,730, and fixed costs of $8,280. If the company installs a new piece of equipment, the variable costs are expected to increase to $34,970 and the number of units produced will increase from 2,800 to 4,100. What is the minimum price the company can accept for each of the additional units if they want to maintain their current level of net income?

A) $1.52
B) $4.80
C) $5.73
D) $6.82
E) $10.55