Reality Planet Ltd

question 72

Multiple Choice

Reality Planet Ltd. sells product a model star at a price of $48 a unit. The per-unit cost data are: direct materials $15, direct labour $10, and overhead $12 (50% fixed and 50% variable) . Reality Planet has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be $3 per unit. The minimum selling price per unit should be:

• A) $34
• B) $30
• C) $40
• D) $31

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Definitions:

Bucc/o

A combining form used in medical terminology meaning cheek, relating to the cheek area.

Opt/o

A prefix in medical terms relating to sight or the eyes, used in conditions, procedures, and specialties concerning vision.

Tars/o

A prefix in medical terminology relating to the ankle or ankle bones.

Posterior

A term denoting the back or rear position of a structure in relation to other structures of the body.