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What should the unit sales 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 break even on the order, what should the unit sales price be?

a. $6.00

b. $8.10

c. $11.60

d. $13.70

Reference no: EM133145039

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