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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
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$19
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$24
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$15
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$25
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