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What should the unit price be

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Question - Lagusta Company incurred the following costs for 48,000 units:

Variable costs $172,000

Fixed costs 224,000

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

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

a. $4.58

b. $5.71

c. $10.38

d. $3.58

Reference no: EM132084897

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