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What should the unit price be

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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

Reference no: EM133146406

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