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

question 120

Multiple Choice

Assume the following cost data: $$\begin{array} { l l } \text { Per-unit costs: } & \\\text { Direct material } & \$ 6 \\\text { Direct labour } & \$ 4 \\\text { Variable overhead } & \$ 2 \\\text { Variable selling } & \$ 4 \\\text { Fixed overhead } & \$ 300 \\\text { Fixed selling } & \$ 400\end{array}$$ A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?

• A) $1,925
• B) $1,775
• C) $2,225
• D) $2,075

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Definitions:

Dualistic

Pertaining to or involving a distinction between two fundamentally different concepts, perspectives, or entities.

Relativistic

Pertaining to the understanding that knowledge, truth, and morality exist in relation to culture, society, or historical context and are not absolute.

Pragmatic

Concerned with practical considerations or consequences in decision-making or communication, focusing on effective and sensible approaches.

Relativistic

Pertaining to the view that concepts such as moral values and truth are not absolute but are relative to the perspectives or cultures from which they originate.