Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The companys average unit costs at this level of activity are given below:

Direct materials	$ 9.50
Direct labor	10.00
Variable manufacturing overhead	2.80
Fixed manufacturing overhead	5.00
Variable selling expenses	1.70
Fixed selling expenses	4.50
Total cost per unit	$ 33.50

The companys relevant range of production is 70,000 - 100,000 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?

Multiple Choice

$24.80

$24.60

$23.80

$26.30