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Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs
Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: The company's relevant range of production is 70,000100,000 units. It has an opportunity to sell 20,000 more units to new overseas customer. The import duties and foreign permits associated with the order would cost $16,000. However, the only selling cost associated with the order would be $1.50 per unit. What is the minimum price that the company could charge on this order and still break even with respect to this opportunity
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