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Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 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 break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 6) $260

Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 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 break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 6) $260

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...
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Question 14 Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 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 break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 c) $3.60
Transcribed Image Text:Question 14 Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 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 break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 c) $3.60
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