Cosy and Co. produces and sells vases for $100. The company has the capacity to produce 50,000 vases each period. At capacity, the costs assigned to each unit are as follows:
Direct Materials cost
$
45
Direct Labor costs
$
15
Facility level costs
$
5
The company has received a special order for 500 vases. 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?
$45
$90
$75
$65