Xenon has received a special order for 120 units of its product. The product normally sells for $2,900 and has the following manufacturing costs:
| |
Per unit |
| Direct materials |
$630 |
| Direct labor |
380 |
| Variable manufacturing overhead |
480 |
| Fixed manufacturing overhead |
1,210
|
| Total cost per unit |
$2,700
|
Assume that Xenon has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Xenon charge to achieve a $15,600 incremental profit?