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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Peach has received a special order for 11,000 units of its product. The product normally sells for $22 and has the following
Per unit
Direct materials $ 6
Direct labor 4
Variable manufacturing
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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