=+5 The company wants to enter a foreign market in which price competition is keen. The company
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=+5 The company wants to enter a foreign market in which price competition is keen. The company seeks a one-time-only special order for 10000 units on a minimum-unit-price basis. It expects that shipping costs for this order will amount to only $0.75 per unit but the fixed costs of obtaining the contract will be $4000. The company incurs no variable marketing costs other than shipping costs. Domestic business will be unaffected. The selling price to break even is:
(a) $3.50,
(b) $4.15,
(c) $4.25,
(d) $3.00 or
(e) $5.00.
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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