Tenna Electronics Sells Arc Monitors for $55 Per Unit A Special Order to Purchase 15,000 Arc Monitors Was Recently

question 89

Multiple Choice

Tenna Electronics sells arc monitors for $55 per unit.Unit product costs are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 14 \\\text { Direct labor } & 20 \\\text { Manufacturing overhead } & 3 \\\text { Total } & \$ 37\end{array}$$ A special order to purchase 15,000 arc monitors was recently received from a customer.There is enough capacity to fill the order and filling this order would not disrupt current operations.Tenna will incur an additional $2 per arc monitor for additional labor costs due to a slight modification the buyer wants made to the original product.One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced.In negotiating a price, how much is the minimum selling price that Tenna Electronics should accept for this special order?

• A)$34
• B)$39
• C)$38
• D)$36

---

Definitions:

Formal Retreat Approach

A strategic decision-making process to withdraw from certain activities, investments, or engagements to reallocate resources more efficiently.

Formal Retreat Approach

A structured method of withdrawal from a situation, often used as a strategic decision-making process in business or conflict resolution contexts.

Informal Withdrawal Approach

A behavioral strategy wherein employees distance themselves from their work roles without officially leaving the organization, often through absenteeism or reduced effort.

Privacy Approach

Strategies or methodologies employed to protect individuals' personal information or data from unauthorized access.