Cara has received a special order from a foreign company, Ask an Expert

Accounting

Cara Industries incurred the following costs for 50,000 units:

Variable costs $90,000
Fixed costs 120,000

Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.

If Cara wants to break even on the order, what should the unit sales price be?

A) $5.05
B) $2.65
C) $1.80
D) $4.20

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9415830

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