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What price should peach charge to make incremental profit

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Question - Peach has received a special order for 10,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:

Per unit

Direct materials $6

Direct Labor $3

Variable manufacturing overhead $2

Fixed manufacturing overhead $6

Unit cost $17

Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $10,000 incremental profit?

Reference no: EM132056096

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