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 5,000units. There is sufficient capacity to fill the order without jeopardizingregular sales. Filling the order will require spending an additional $4,250for shipping.If Cara wants to earn $4,000 on the order, what should the unit pricebe?a) $1.65b) $5.85c) $3.45d) $2.60

We have given, Variable cost for 50,000 units = $90,000 So, Variable cost per unit = 50,000$90,000…

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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