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The Camel Company produces 12,800 units of item Roto 454 annually at a total cost of $243,200. Direct materials $ 25,600 Direct labor 70,400 Variable

The Camel Company produces 12,800 units of item Roto 454 annually at a total cost of $243,200.

Direct materials $ 25,600
Direct labor 70,400
Variable overhead 57,600
Fixed overhead 89,600
Total $ 243,200

The Yukon Company has offered to supply 12,800 units of Roto 454 per year for $18 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $37,120 per year. At what price would Camel be indifferent to Yukon's offer?

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