indigo industries produces a product which has $12 of variable costs and $5 fixed costs (based on producing 100,000 units). indigo is planning to manufacture 88,000 units this year. indigo has received a special order from a foreign wholesaler for 3,000 units. indigo normally sells these units for $20 each. if the offer is accepted, indigo will incur $2,400 in additional shipping costs. if indigo wants to break-even on the order, what is the lowest price that can accepted?

Question

04-11-2022
Business

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indigo industries produces a product which has $12 of variable costs and $5 fixed costs (based on producing 100,000 units). indigo is planning to manufacture 88,000 units this year. indigo has received a special order from a foreign wholesaler for 3,000 units. indigo normally sells these units for $20 each. if the offer is accepted, indigo will incur $2,400 in additional shipping costs. if indigo wants to break-even on the order, what is the lowest price that can accepted?

Sagot :

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