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

a special offering to buy 20,000 units has been 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 idle capacity to manufacture the additional units . Two - thirds of the manufacturing overhead is fixed and would not be affected by this order . Assume that direct labour is an avoidable cost in this decision In negotiating a price for the special order , what should be the minimum acceptable selling price per unit ? a ) $ 14 . b ) $ 15 . c ) $ 16 . d ) $ 18.

Direct Materials Direct Labour Manufacturing Overhead Unit Product Cost $4 $5 $6 $15