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

question 72

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:

Ordinary Annuity

An annuity wherein payments are made at the end of each period, often used in savings and loan repayments.

Financial Calculator

A specialized calculator used for financial calculations, including interest rates, loan payments, investment valuations, and more.

Periodic Payment

Regular payments made over a stipulated period, often in the context of loans or annuities.

Ordinary Annuity

A series of equal payments or receipts that occur at the end of each period of a specified length of time.