Acme Shoe Co

Multiple Choice

Acme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per kit. Suppose a consultant tells Acme that it can sell 750,000 heel repair kits. What price must Acme charge to achieve a profit of $2.5 million?

A) $5.00
B) $8.33
C) $11.33
D) $16.33
E) $20.00