Thompson Company sells its single product for $125 per unit. During 2024, Thompson had the...
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Thompson Company sells its single product for $125 per unit. During 2024, Thompson had the following costs: Variable costs: Direct materials .............. $32.70 per unit Direct labor .................. $28.40 per unit Selling costs ................. $21.90 per unit Fixed costs: Advertising ................... $ 7,600 Rent .......................... $10,900 Depreciation .................. $ 2,500 In an attempt to improve the company's profitability, the president of Thompson Company decided to make the following changes for 2025: 1. increase the selling price of the product 2. use higher quality materials in the manufacture of the product which will increase the direct material cost by $3 per unit 3. increase advertising by $4,500 Calculate the selling price per unit of Thompsons product needed in 2025 in order to maintain the samebreak-even point in units as in 2024.
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