Gen Company has provided the following per unit information pertaining to the production and sale Of 2,000 units of generators:
Gen has received a special sales order for 1,000 units of this generator. Given that Gen is currently Operating at capacity, Gen will have to increase its fixed costs by 40% in order to accommodate the Special sales order. The variable selling expenses associated with this special sales order will be Reduced by $8 per unit. What is the minimum per unit selling price that Gen is willing to accept?
A) $442
B) $434
C) $464
D) $494
Correct Answer:
Verified
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