FRANCORP sells product ABC for $60. The variable production cost is $12, the fixed production cost is $20 per unit, and the variable selling cost is $2. A customer has requested a special order for...

FRANCORP sells product ABC for $60. The variable production cost is $12, the fixed production cost is $20 per unit, and the variable selling cost is $2. A customer has requested a special order for 12,000 units of product ABC with a unique colour — purple. This special order would not involve any selling costs, but FRANCORP would need to purchase a special colouring machine which costs $75,000. Below what price would FRANCORP actually be losing money on the sale? Note: there is enough capacity to fulfill this order.

a. $22.80
b. $18.25
c. $15.75
d. $17.15