Forrest Corporation Manufactures Parts That Are Used in the Production

question 87

Multiple Choice

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.

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Definitions:

Unethical Behavior

Actions or practices that violate moral or professional guidelines, often to gain personal benefit or advantage.

Mentally Manipulate

The act of influencing or controlling someone's mind or behavior through psychological techniques.

Michael LeBoeuf

An American business author and former management professor known for his writings on business and management.

Customers Buy

The action or process of consumers purchasing goods or services for personal use or consumption.