Solved

Lagusta Company Incurred the Following Costs for 50000 Units

Question 118

Multiple Choice

Lagusta Company incurred the following costs for 50000 units:
Variable costs $180000
Fixed costs 240000
Lagusta has received a special order from a foreign company for 5000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $8500 for shipping.
If Lagusta wants to earn $9000 on the order what should the unit price be?


A) $3.60
B) $11.90
C) $7.10
D) $5.30

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions