Assume the Following Cost Data A Special Order for 100 Units Is Received

question 4

Multiple Choice

Assume the following cost data:
$\begin{array}{l}\text { Per-unit costs: }\\\begin{array} { l r } \text { Direct material } & \$ 6 \\\text { Direct labor } & \$ 4 \\\text { Variable overhead } & \$ 2 \\\text { Variable selling } & \$ 4 \\\text { Fxed overhead } & \$ 300 \\\text { Fxed selling } & \$ 400\end{array}\end{array}$
A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $1.00 per unit and cost $500 for the stamping machine. What price must be charged to earn $300 on the special order?

• A) $2,700
• B) $2,100
• C) $2,225
• D) $2,500

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Definitions:

Conservation

The protection, preservation, and mindful utilization of natural resources and environments to ensure their sustainability for future generations.

Rally

A recovery in the price of a stock or market after a period of decline.

Executive Director

A top-level manager or administrator in charge of managing the daily operations and overall strategy of an organization, typically reporting to a board of directors.

Participate

To take part in an activity or event, actively engaging rather than just observing.