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Peach Company has received a special order for 15,000 units of its product....

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Accounting

Peach Company has received a special order for 15,000 units of its product. The product normally sells for $20 and has the following manufacturing costs:

Cost per Unit
Direct materials $ 7
Direct labor 4
Variable manufacturing overhead 3
Fixed manufacturing overhead 3
Total unit cost $ 17

Assume that Peach has sufficient capacity to fill the order without harming normal production and sales. What minimum unit price should Peach charge per unit to make a $15,000 incremental profit?

Multiple Choice

$14

$17

$15

$20

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