Peach Company has received a special order for 15,000 units of its product....
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Accounting
Peach Company has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:
Cost per Unit
Direct materials
$ 7
Direct labor
4
Variable manufacturing overhead
3
Fixed manufacturing overhead
3
Total unit cost
$ 17
Assume that Peach has sufficient capacity to fill the order without harming normal production and sales. What minimum unit price should Peach charge per unit to make a $15,000 incremental profit?
Multiple Choice
$14
$17
$15
$20
Answer & Explanation
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