The cost to produce 8,000 units at 70% capacity is:

Direct materials: KD 16,000

Direct labor: KD 8,000

Factory overhead, all fixed: KD 12,000

Selling expense (40% variable, 60% fixed): KD 8,000

What unit price would the company have to charge to make KD 2,000 on a sale of 500 additional units that would be shipped out of the normal market area?

Select one:

a.KD 8.40

b.KD 7.40

c.KD 8.90

d.KD 7.00