Use the Following Data for the Next 2 Questions

question 101

Multiple Choice

Use the following data for the next 2 questions:
A manufacturer operating with excess capacity has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labor, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25.
-Under the general decision rule, the minimum price per unit for this special order is

• A) $7.25
• B) $6.50
• C) $7.00
• D) $7.50

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Definitions:

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his theory of cognitive development in children.

Blood Pressure Cuff

A device used in measuring blood pressure, consisting of an inflatable cuff to collapse and then release the artery under the cuff in a controlled manner.

Developmental Delay

A condition where a child does not achieve developmental milestones within the expected age range.

Encourage Play

A method or approach that promotes engaging in playful activities to stimulate physical, cognitive, or social development.