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Violet has received a special order for 110 units of its product. The product normally sells for $2,400 and has the following manufacturing costs: Per
Violet has received a special order for 110 units of its product. The product normally sells for $2,400 and has the following manufacturing costs:
Per unit | |||
Direct materials | $ | 640 | |
Direct labor | 340 | ||
Variable manufacturing overhead | 440 | ||
Fixed manufacturing overhead | 690 | ||
Unit cost | $ | 2,110 | |
Assume that Violet has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Violet charge to achieve a $19,800 incremental profit?
A. $2,110
B. $1,730
C. $1,600
D. $1,420
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