Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Financial Account Query
Transcribed Image Text:Cara Industries incurred the following costs for 50,000 units:
Variable costs: $90,000
Fixed costs: 120,000
Cara 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 $4,250
for shipping.
If Cara wants to earn $4,000 on the order, what should the unit price
be?
a) $1.65
b) $5.85
c) $3.45
d) $2.60
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