Memory Division of Missing Byte, Inc

question 78

Multiple Choice

Memory Division of Missing Byte, Inc. The Memory Division of Missing Byte, Inc. produces a high-quality computer chip. Unit production costs (based on capacity production of 100,000 units per year) follow:
Refer to Memory Division of Missing Byte, Inc. Assume, for this question only, that the Memory Division is producing and selling at capacity. What is the minimum selling price that the division would consider on a "special order" of 1,000 chips on which no variable period costs would be incurred?

• A) $100
• B) $72
• C) $81
• D) $94

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Definitions:

Financial Statement

An orderly enumeration of monetary activities and financial health of an entity, be it a business, individual, or something else.

Financial Statement

A comprehensive report detailing a company's financial performance, position, and cash flows over a specific period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting principles.

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.