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Blue Chip Company sells gears for $9 per unit. The unit cost of each gear...

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Accounting

Blue Chip Company sells gears for $9 per unit. The unit cost of each gear follows:
An order to purchase 4,000 gears was recently received from a new customer. There is enough capacity to fill the order and filling
this order would not disrupt current operations. Blue Chip Company would incur an additional $1.80 per gear for shipping costs.
Half of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced. Of the choices
shown below, which is the lowest acceptable selling price given the cost of the product?
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