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What is the minimum price that could be charged

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Question - The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on 10,000 units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach to pricing?

a. $5.00

b. $20.00

c. $25.00

d. $30.00

Reference no: EM132522946

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