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Peach has received a special order for 14,000 units of its product. The product normally sells for $25 and has the following manufacturing costs: Per

Peach has received a special order for 14,000 units of its product. The product normally sells for $25 and has the following manufacturing costs:

Per unit
Direct materials $ 7
Direct labor 6
Variable manufacturing overhead 5
Fixed manufacturing overhead 6
Unit cost $ 24

Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $14,000 incremental profit?

Multiple Choice

  • $19

  • $25

  • $15

  • $24

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