Suppose There Is Not Enough Idle Capacity to Produce All

question 119

Multiple Choice

Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 700 units for regular customers.The minimum acceptable price per unit for the special order is closest to:

• A) $63.78.
• B) $69.10.
• C) $78.90.
• D) $86.10.