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Forrest Corporation Manufactures Parts That Are Used in the Production

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Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:
Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:   The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is: A)  $96. B)  $99. C)  $105. D)  $108. E)  None of the answers is correct.
The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is:

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Definitions:

Data Analysis

The process of inspecting, cleansing, transforming, and modeling data with the goal of discovering useful information and supporting decision making.

Share Of Customer

The amount of a customer’s total spending that a business captures in its sector, focusing on increasing purchases by existing customers rather than acquiring new ones.

CRM Efforts

Initiatives and practices relating to Customer Relationship Management, aimed at managing a company’s interaction with current and potential customers.

Lifetime Value

The total net profit a company anticipates earning from a customer throughout the entirety of their relationship.

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