Violet has received a special order for 100 units of its product. The product normally sells for $2,000 and has the following manufacturing costs: Per unitDirect materials $600Direct labor 300Variable manufacturing overhead 400Fixed manufacturing overhead 500Unit cost $1,800Assume that Violet has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Violet charge to achieve a $25,000 incremental profit?
A. $1,680
B. $1,550
C. $1,800
D. $1,300
Answer: B
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