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Martin Company Incurred the Following Costs for 70,000 Units: Variable

Question 68

Multiple Choice

Martin Company incurred the following costs for 70,000 units: Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping.
If Martin wants to break even on the order, what should the unit sales price be?


A) $6.00
B) $8.10
C) $11.60
D) $13.70

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