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Question - Martin Company incurred the following costs for 70,000 units:
Variable costs $350,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $3,000 for shipping. If Martin wants to earn $12,000 on the order, what should the unit price be?
a. $10.00
b. $15.70
c. $8.00
d. $15.10
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