A Drinks Factory Has Spare Capacity and Is Considering Taking

Multiple Choice

A drinks factory has spare capacity and is considering taking on a special order of 50,000 bottles. It usually charges 54p per bottle to recover its overheads. If its variable costs are £6.80 and it will incur distribution costs of £300 for every 1,000 bottles, what is the minimum price it should charge?

A) £6.80
B) £7.34
C) £7.64
D) £7.10