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What should the unit sales price be

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Reference no: EM131812048

Question - Cara Industries incurred the following costs for 50,000 units:

Variable costs $90,000

Fixed costs 120,000

Cara 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 $4,250 for shipping.

If Cara wants to break even on the order, what should the unit sales price be?

A) $5.05

B) $2.65

C) $1.80

D) $4.20

Reference no: EM131812048

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