The Answer is $10 per unit
Computation of sales price per unit that would have to be charged to earn a profit of $80,000
Profit = (Selling Price × Units) - (Variable Cost × Units) - Fixed Costs
New Total Fixed Costs: $16,000 x 2 = $32000
New Sales =16000 units
New Variable Cost($18 – 5 – 10) = $3
$80 000 = 16000X - ($3 × 16000) - $32,000
$80 000 = 16000X - $48000 - $32,000
$80 000 = 16000X - $80000
$160000 = 16000X
X = $160000 / 16000
= $10 per unit
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