Wagner Company sells product A at a selling price of $21 per unit. Wagner's cost per unit based on the full capacity of 200,000 units is as follows:

Direct materials	$4
Direct labor	5
Overhead (two-thirds of which is fixed)	6
	$15

A special order offering to buy 20,000 units was received from a foreign distributor. The only selling costs that would be incurred on this order would be $3 per unit for shipping. Wagner has sufficient existing capacity to manufacture the additional units. In negotiating a price for the special order, Wagner should consider that the minimum selling price per unit should be

Question 3 options:

A)

$14.

B)

$15.

C)

$16.

D)

$18.