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Peach Company has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:
Peach Company has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:
Cost per Unit | |
---|---|
Direct materials | $ 7 |
Direct labor | 4 |
Variable manufacturing overhead | 3 |
Fixed manufacturing overhead | 3 |
Total unit cost | $ 17 |
Assume that Peach has sufficient capacity to fill the order without harming normal production and sales. What minimum unit price should Peach charge per unit to make a $15,000 incremental profit?
Multiple Choice
$14
$17
$15
$20
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