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Free InquiryMatch Co. manufactures a product with the following costs per unit, based on a maximum plant capacity of 400,000 units per year:
Direct materials $ 60
Direct labor 10
Variable overhead 40
Fixed overhead 30
Total $140
Match has a ready market for all 400,000 units at a selling price of $200 each. Selling costs in this market consist of $10 per unit shipping and a fixed licensing fee of $50,000 per year. Reno Co. wishes to buy 5,000 of these units on a special order. There would be no shipping costs on this special order. What is the lowest price per unit at which Match should be willing to sell the 5,000 units to Reno?
A.$110
B.$140
C.$190
D.$200
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