Peach has received a special order for 11,000 units of its product. The product normally sells for $22 and has the following manufacturing costs:      Per unit Direct materials         $    6 Direct labor              4 Variable manufacturing overhead              3 Fixed manufacturing overhead              4 Unit cost         $    17 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $11,000 incremental profit? Multiple Choice 1. $22 2.$20 3.$17 4.$14

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Peach has received a special order for 11,000 units of its product. The product normally sells for $22 and has the following manufacturing costs:

     Per unit
Direct materials         $    6
Direct labor              4
Variable manufacturing overhead              3
Fixed manufacturing overhead              4
Unit cost         $    17

Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $11,000 incremental profit?

Multiple Choice

1. $22

2.$20
3.$17
4.$14

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