Special order pricing. Shorewood Shoes company makes and sells a variety of leather shoes for children. For its current mix of different models and sizes, the average selling price and costs per pair of shoes are as follows:

Price $$20$

Costs:

Direct materials $$6$

Direct Labor $$4$

Variable manufacturing overhead $$2$

Variable selling costs $$1$

Fixed overhead $$3$

Total costs $$16$

Shoes are manufactured in batch sizes of $100$ pairs. Each batch requires $5$ machine hours to manufacture. The plan has a total capacity of $4,000$ machine hours per month, but the current monthly production consumes only about $80\%$ of the capacity.

A discount store has approached Shorewood to buy $10,000$ pairs of shoes next month. It has requested that the shoes bear its own private label. Embossing the private label will cost Shorewood an additional $$0\mathrm{.}50$ per pair. However, no variable selling costs will be incurred for fulfilling this special order.

Determine the minimum $($floor$)$ price that Shorewood Shoes should charge for this order. What other considerations are relevant in this decision?