Snappy gifts wants a net profit of $32,400 on its new glitter gift bag. the fixed costs for producing the bag are $184,000 while the variable cost per unit is $1.20. if the estimated unit sales are 395,000 units, what selling price per unit should snappy try? (round to the nearest cent.)

Selling price = $1.75 per unit

Step-by-step explanation:

Let x is the selling price of one gift bag.

So selling price of 395000 units will be = $39500x

Since fixed costs for producing the bag are $184000 and variable cost per unit is = $1.20

Therefore, variable cost of 395000 units will be = $1.20×395000

                                                                                = $474000

Now the cost price of 395000 units will be = Fixed cost + variable cost

                                                                       = 184000 + 474000

                                                                       = $658000

Now we know profit = Selling price - cost price

                      32400 = 395000x - 658000

                  395000x = 32400 + 658000

                  395000x = 690400

                               x =

                               x = $1.75

Therefore. $1.75 per unit will be the selling price of glitter gift bags.

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