Buxton Company Is Currently Operating at a Loss of $15,000

question 3

Multiple Choice

Buxton Company is currently operating at a loss of $15,000.The sales manager has received a special order for 5,000 units of product,which normally sells for $35 per unit.Costs associated with the product are: direct material,$6;direct labor,$10;variable overhead,$3;applied fixed overhead,$4;and variable selling expenses,$2.The special order would allow the use of a slightly lower grade of direct material,thereby lowering the price per unit by $1.50 and selling expenses would be decreased by $1.If Buxton wants this special order to increase the total net income for the firm to $10,000,what sales price must be quoted for each of the 5,000 units?

• A)$23.50
• B)$24.50
• C)$27.50
• D)$34.00

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Definitions:

Early Childhood Nutrition

The practice of providing young children with the necessary nutrients to support optimal growth and development.

Longitudinal Design

A research strategy where the same individuals are observed over a period of time to detect changes.

Nutritional Consumption

The intake and use of food and substances for body growth, health, and maintenance.

Ethnic Gloss

Use of an ethnic label such as African American or Latino in a superficial way that portrays an ethnic group as being more homogeneous than it really is.