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Fruit Bouquet Inc manufactures fruit bouquets. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates
Fruit Bouquet Inc manufactures fruit bouquets. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 70% of capacity for the other six months of the year. The company has provided the following data for the year:
Fruit Bouquet Inc. receives an offer to produce 5000 fruit bouquets for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order?
No. of units produced and sold | 500,000 | units |
Sales price | $30 | per unit |
Variable manufacturing costs | $15 | per unit |
Fixed manufacturing costs | $800,000 | per year |
Variable selling and administrative costs | $5 | per unit |
Fixed selling and administrative costs | $600,000 | per year |
Group of answer choices
$15
$30
$20
$10
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