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What is the minimum price the company should charge

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Reference no: EM132072918

Question - A new customer has asked the company to fill a onetime order. There is available capacity. Factory overhead is fully absorbed. The company requires a $5 profit on each unit. Following is the cost per unit-direct material $4, direct labor $10, manufacturing overhead $7. What is the minimum price the company should charge to satisfy the above requirements?

a. $21

b. $19

c. $26

d. $16

Reference no: EM132072918

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