Brand X Computers Makes and Sells Computers

question 44

Multiple Choice

Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10,000 computers each period: Brand X is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7,500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order.

• A) $303
• B) $250
• C) $300
• D) $265
• E) $315

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Definitions:

Experiments

A procedure undertaken to test a hypothesis, typically involving the manipulation of variables to observe the effect on some behavior or condition.

Sample

A subset of individuals or observations drawn from a population used for statistical analysis, intended to represent the population from which it is drawn.

Population

The entire group of individuals or instances about whom the study is to make inferences, in contrast to a sample drawn from it for analysis.

Census

A systematic collection, analysis, and publication of data pertaining to the population and its components at a specific time.