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What should the unit price be

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Reference no: EM132537950

Question - Link Company incurred the following costs for 50,000 units:

Variable costs $180,000

Fixed costs 240,000

Link has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $8,500 for shipping.

If Link wants to earn $9,000 on the order, what should the unit price be?

A. $3.60

B. $11.90

C. $7.10

D. $5.30

E. None of the above.

Reference no: EM132537950

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