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Peach has received a special order for 10,000 units of its product.The product normally sells for $20 and has the following manufacturing costs: Assume that Peach has sufficient capacity to fill the order.What price should Peach charge to make a $10,000 incremental profit?
Fixed Costs
Expenses that do not fluctuate with changes in production level or sales volume.
Sales
Transactions between a seller and a buyer where the seller provides goods, services, or assets in exchange for money or other compensation.
Break-even Point
The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even".
Mixed Cost
A type of cost that contains both fixed and variable components and changes in total with the level of activity.
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