Country Classics makes ceramic lamps that are normally sold for $12.50 each. The variable manufacturing costs are $4.50 per unit while the fixed manufacturing costs are $1.50 per unit. As well, sales staff earn a 10% on all sales. Recently Country Classics received a special order to provide 1,000 lamps. Country Classics has sufficient capacity to meet this order. What price should Country Classics charge if it wants to breakeven on the order?

Answer rating: 100% (QA)

To determine the price at which Country Classics should charge to break even on the order of 1000 la... View the full answer