Avocado Has Received a Special Order for 2,000 Units of Its

question 24

Multiple Choice

Avocado has received a special order for 2,000 units of its product at a special price. The product normally sells for $400 and has the following manufacturing costs: Assume that Avocado has sufficient capacity to fill the order. What special order price should Avocado charge to make a $20,000 incremental profit?

• A) $400
• B) $360
• C) $270
• D) $260

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Definitions:

Abbreviation

A shortened form of a word or phrase used to represent the full term.

Liter

A metric unit of volume equal to 1,000 cubic centimeters or approximately 0.26 US gallons.

Cancer

A group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body.

Mcg

Microgram, a unit of measure equal to one millionth of a gram or one thousandth of a milligram.