Kellman Corporation Kellman Corporation Sells a Product for $18 Per

question 95

Multiple Choice

Kellman Corporation Kellman Corporation sells a product for $18 per unit,and the standard cost card for the product shows the following costs:
Refer to Kellman Corporation.Kellman received a special order for 1,000 units of the product.The only additional cost to Kellman would be foreign import taxes of $1 per unit.If Kellman is able to sell all of the current production domestically,what would be the minimum sales price that Kellman would consider for this special order?

• A)$18.00
• B)$11.00
• C)$5.40
• D)$19.00

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Definitions:

Contractual Restrictions

Limitations placed on transactions, operations, or activities that are outlined in a legal contract between parties.

Negotiable Checks

Checks that can be converted to cash or equivalent by the holder, allowing for easier transactions and liquidity.

Internal Control

Systems and procedures designed to ensure the accuracy and reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Voucher Register

A record of vouchers that have been prepared, authorized, and paid; it serves as a chronological record of business transactions.