Memory Division of Missing Byte, Inc

question 17

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 operating at a level of 70,000 chips per year. What is the minimum price that the division would consider on a "special order" of 1,000 chips to be distributed through normal channels?

• A) $78
• B) $95
• C) $100
• D) $81

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