Micro Enterprises Has the Capacity to Produce 10,000 Widgets

question 1

Multiple Choice

Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?

• A)The impact on the normal selling price of $6
• B)Will an additional shift be needed to complete the order?
• C)Are future orders from Coyote likely?
• D)Does the special price comply with the Robinson-Patman Act?
• E)All of the above

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Definitions:

Element O

Element O refers to Oxygen, a chemical element with the symbol O and atomic number 8, essential for life and a major part of the Earth's atmosphere.

Fractured

Refers to the breaking or cracking of a material or surface, often seen in rocks or geological structures.

Cleavage

Cleavage in geology refers to the tendency of minerals to split along specific planes where the bonds are weakest, resulting in smooth, flat surfaces.

Noble Gases

A group of chemical elements with very low reactivity, including helium, neon, argon, krypton, xenon, and radon.