The Immanuel Company Has Just Obtained a Request for a Special

question 111

Multiple Choice

The Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is: $\begin{array}{|l|r|}\hline \text { Variable Production Cost } & \$ 4.60 \\\hline \text { Fixed Production Cost } & \$ 1.80 \\\hline \text { Variable Selling Expense } & \$ 1.00 \\\hline\end{array}$
If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $\$ 0.30$ per unit.
-At what selling price per unit should Immanuel be indifferent between accepting or rejecting the special offer?

• A) $4.90.
• B) $6.40.
• C) $7.40.
• D) $7.70.

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Definitions:

Information Processing

The methods by which individuals take in, analyze, store, and recall information through cognitive functions.

Gender Schema

A cognitive framework that organizes information relevant to gender, influencing how individuals perceive and interact with gendered aspects of their environment.

Mental Structure

An organized way of thinking or cognitive architecture that influences how information is processed, perceived, and remembered.

Gender Norm

The roles, behaviors, activities, and characteristics that society deems suitable for males and females based on social constructions.