Finestra Corporation produces a single product that it currently sells for $10. Fixed expenses are $120,000 for the year and variable expenses are $6 per unit. In addition, Finestra’s salespersons are paid a commission of 10% of their sales.
A customer has just approached Finestra to make a special, one time purchase of 10,000 units. These units would not be sold by the salespeople, and therefore no commission would have to be paid. The price Finestra would have to charge on this special order to earn an additional profit of $40,000 is: Question 13 options:
| $9.00 per unit | |
| $10.00 per unit | |
| $5.00 per unit | |
| $11.20 per unit |
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