Peach has received a special order for 10,000 units of its product. The product normally sells for $20 and has the following manufacturing costs: Per unitDirect materials $6Direct labor  3Variable manufacturing overhead  2Fixed manufacturing overhead  6Unit cost $17  Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $10,000 incremental profit?

A. $20
B. $15
C. $17
D. $12


Answer: D

Business

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