What should the unit sales price be

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Reference no: EM132793876

Sheffield Corp. incurred the following costs for 60000units:

Variable costs$360000

Fixed costs392000

Sheffield has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping.

Problem 1: If Sheffield wants to break even on the order, what should the unit sales price be?

Option 1: $12.53

Option 2: $6.00

Option 3: $7.40

Option 4: $13.93

Reference no: EM132793876

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