What should the unit price be? Cara Industries incurred the following costs for 50,000 units:Variable costs: $90,000Fixed costs: 120,000Cara has received a special order from a foreign company for 5,000 units.There is sufficient capacity to fill the order without jeopardizing regularsales. Filling the order will require spending an additional $4,250 forshipping.If Cara wants to earn $4,000 on the order, what should the unit price be?a) $1.65b) $5.85c) $3.45d) $2.60

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Answered: Cara Industries incurred the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Cara Industries incurred the following costs for 50,000 units: Variable costs: $90,000 Fixed costs: 120,000 Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping. If Cara wants to earn $4,000 on the order, what should the unit price be? a) $1.65 b) $5.85 c) $3.45 d) $2.60
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