Martin Company incurred the following costs for 50,000 units: Martin 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 $8,500 for shipping.
If Martin wants to earn $8,000 on the order, what should the unit price be?

Question

Martin Company incurred the following costs for 50,000 units:  Martin 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 $8,500 for shipping.
If Martin wants to earn $8,000 on the order, what should the unit price be?

Quizplus · Accepted Answer

The Answer of Martin Company incurred the following costs for 50,000 units:  Martin 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 $8,500 for shipping.
If Martin wants to earn $8,000 on the order, what should the unit price be?

Martin Company Incurred the Following Costs for 50,000 Units