The Price Company Will Produce 55,000 Widgets Next Year

Multiple Choice

The Price Company will produce 55,000 widgets next year.Variable costs will equal 40 percent of sales,while operating fixed costs will total $110,000.At what price must each widget be sold for the company to achieve an EBIT of $95,000?

A) $2.00
B) $4.45
C) $5.00
D) $5.37
E) $6.21