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Peach has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs: Per
Peach has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:
Per unit | |
Direct materials | $7 |
Direct labor | 4 |
Variable manufacturing overhead | 3 |
Fixed manufacturing overhead | 3 |
Unit cost | $17 |
Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $15,000 incremental profit? |
$15
$14
$20
$17
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