Special Order Pricing
Response to the following problem:
The company is deciding whether to accept a special order. The company's costs for the most recent year were as follows:
Total variable costs.........................................$2,800,000
Total fixed costs...............................................1,300,000
The company produced 100,000 units in the most recent year. What is the minimum price per unit at which the company should accept the special order (ignoring any qualitative factors)?