Use the Following Data for the Next 2 Questions

question 39

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.
-Assume there is no excess capacity (i.e., the company can sell every unit that it produces to regular customers) . Under the general decision rule, the minimum price per unit for this special order would be

• A) $10.00
• B) $7.25
• C) $5.75
• D) $6.50

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Definitions:

Performance Of Organizations

The level of achievement and efficiency an organization attains in meeting its objectives and goals.

Performance Of People

An assessment of how well individuals or groups complete tasks or meet objectives, often evaluated in work or competitive settings.

New Generation

Refers to the current or coming group that is entering adulthood or a workforce, often characterized by different traits or behaviors than previous generations.

Work/Life Balance

The equilibrium between professional responsibilities and personal activities, aiming for a satisfying experience in both areas without undue stress.