Cameron Industries incurred the following costs for 60,000 units: • Variable costs: $108,000 • Fixed costs: $140,000 Cameron has received a special order from a foreign company for 6,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $5,100 for shipping. If Cameron wants to earn $4,800 on the order, what should the unit price be? a) $1.85 b) $5.50 c) $4.60 d) $3.45

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
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Cameron Industries incurred the following costs for 60,000 units:
• Variable costs: $108,000
• Fixed costs: $140,000
Cameron has received a special order from a foreign company for
6,000 units. There is sufficient capacity to fill the order without
jeopardizing regular sales. Filling the order will require spending
an additional $5,100 for shipping.
If Cameron wants to earn $4,800 on the order, what should the unit
price be?
a) $1.85
b) $5.50
c) $4.60
d) $3.45
Transcribed Image Text:Cameron Industries incurred the following costs for 60,000 units: • Variable costs: $108,000 • Fixed costs: $140,000 Cameron has received a special order from a foreign company for 6,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $5,100 for shipping. If Cameron wants to earn $4,800 on the order, what should the unit price be? a) $1.85 b) $5.50 c) $4.60 d) $3.45
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