A company is currently operating at 75% capacity and producing 3,000 units. Current cost information relating to this production is shown in the table below: Per UnitSales price$43 Direct material$7 Direct labor$6 Variable overhead$4 Fixed overhead$4 The company has been approached by a customer with a request for a 200-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

A. Any amount over $13 per unit.
B. Any amount over $43 per unit.
C. Any amount over $21 per unit.
D. Any amount over $17 per unit.
E. Any amount over $22 per unit.


Answer: D

Business

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