Answer:
$90
Explanation:
No of TV set in 10 years = 12000*10 years = 120,000 TV sets
Total component cost = 120,000*$60 = $7,200,000
Total labor cost = 120,000 * $10 = $1,200,000
Total cost of CEO Salary & Overheads = $200,000 * 10 = $2,000,000
Cost of machinery = $400,000
Total cost = $7,200,000 + $1,200,000 + $2,000,000 + $400,000
Total cost = $108,000,000
Cost per unit = $108,000,000/120,000
Cost per unit = $90
So, for a no profit-no loss scenario, the selling price should be $90
