Question
Stratford Company makes a product that sells for $15 per unit' Variable costs are $6 per unit, and fixed costs total $180,000 annually. Refer to
Stratford Company makes a product that sells for $15 per unit' Variable costs are $6 per unit, and fixed costs total $180,000 annually.
Refer to the original data. Assume that due to a slack in demand the company ls selling only 19,000 units per year. An order has been received from a wholesale distribution who wants to purchase 4,000 units on a special price basis What unit price would have to be quoted to the distributor if the company wants to earn an overall profit of $15,000 for the year? (Present sales would not be disturbed by this special order.)
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