The Mighty Music Company produces and sells a desktop speaker for $100. The company has the capacity to produce 50,000 speakers each period. At capacity, the costs assigned to each unit are as follows:

Unit level cost ..........................45

Product level cost ....................15

Facility level cost .......................5

The company has received a special order for 500 speakers. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order?

A. $95

B. $45

C. $75

D. $60

Answer rating: 100% (QA)

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