Managerial Accounting: Please explain as to why this is the correct answer.

11. The short-run differential costs of a product $25. Fixed costs are $5 per unit based on 10,000 are units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach pricing? S 5.00 to a. b. $20.00 $25.00 d. $30.00 C. ANS: C $25.00