Multiple Choice Question 61

Sheridan Company incurred the following costs for 66000 units:

Variable costs	$396000
Fixed costs	392000

Sheridan has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $5600 for shipping. If Sheridan wants to break even on the order, what should the unit sales price be?

$6.00

$7.60

$11.94

$13.54