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Question - Link Company incurred the following costs for 50,000 units:
Variable costs $180,000
Fixed costs 240,000
Link 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 $8,500 for shipping.
If Link wants to earn $9,000 on the order, what should the unit price be?
A. $3.60
B. $11.90
C. $7.10
D. $5.30
E. None of the above.
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