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Sheffield Corp. incurred the following costs for 60000units:
Variable costs$360000
Fixed costs392000
Sheffield has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping.
Problem 1: If Sheffield wants to break even on the order, what should the unit sales price be?
Option 1: $12.53
Option 2: $6.00
Option 3: $7.40
Option 4: $13.93
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