Firm A sells 25,000 frisbees per year for $18 each and incurs the following costs:...
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Accounting
Firm A sells 25,000 frisbees per year for $18 each and incurs the following costs:
| Variable manufacturing costs | $ 125,000 |
| Fixed manufacturing costs | $ 110,000 |
| Variable selling and administrative costs | $ 85,000 |
| Fixed selling and administrative costs | $ 40,000 |
A major retailer wants to buy a special order of 6,000 frisbees at a special price. Firm A will not suffer any changes to its fixed costs by taking the order. What is the minimum price at which Firm A can sell the special order frisbees in order to not take a loss on the sale?
Group of answer choices
$18.00
$6.00
$8.40
$10.50
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