Duncan Co Sells Product P at a Price of $38 a a Unit

question 12

Multiple Choice

Duncan Co. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labour $10, and overhead $12 (25% fixed and 75% variable) . Wolff 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) $24
• B) $30
• C) $32
• D) $36

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Definitions:

Negotiating

The process of discussing something formally in order to reach an agreement or compromise between two or more parties.

Moderately Aggressive

A behavior characterized by assertiveness and competitiveness, though not to an extreme or harmful degree.

Moderately Cooperative

Showing a willingness to work with others to a reasonable degree, balancing involvement with independence.

Assertive Ways

Communication and behavior types that involve standing up for one’s personal rights and expressing thoughts, feelings, and beliefs in direct, honest, and appropriate ways.