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:

Transtheoretical Therapist

A therapist who utilizes the Transtheoretical Model of Behavior Change to help clients progress through stages of change at their own pace.

Maladaptive Cognitions

Thoughts or patterns of thinking that are counter-productive and can lead to negative outcomes or mental health issues.

Symptomatic Concerns

Issues or problems relating to symptoms of a disease or disorder, such as pain, fatigue, or depression.

Situational Levels

Pertains to the specific contexts or environments and their impact on an individual's behavior or emotional state.