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:

Ownership Interests

The rights and stake a person or entity has in property, including the rights to use, sell, or lease it.

Real Property

Land and anything permanently attached to it, such as buildings, in contrast to personal property, which is movable.

Subsurface

Referring to the area beneath the earth's surface, often related to underground water or mineral reserves.

Surface

The outermost layer or boundary of an object or material.