Quantum Manufactures Parts That Are Used in the Production of Washers

question 28

Multiple Choice

Quantum manufactures parts that are used in the production of washers and dryers. The following costs are associated with Part No. 41: $\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 60 \\\hline \text { Direct labour } & 29 \\\hline \text { Variable manufacturing overhead } & 32 \\\hline \text { Fixed manufacturing overhead } & 10 \\\hline \text { Variable selling costs } & 9 \\\hline\end{array}$ The company has received a special-order inquiry from an appliance manufacturer in Portugal for 16,000 units of Part No.41. A total of 30% of Quantum's fixed manufacturing overhead can be avoided on the order, and the variable selling costs per unit will amount to only $6. The minimum price that Quantum should charge the Portuguese manufacturer is:

• A)$127.
• B)$130.
• C)$134.
• D)$137.
• E)$140.

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Definitions:

Specialize

The process by which cells or organisms adapt or become more suited to perform a specific function or to thrive in a particular environment.

Stem Cells

Undifferentiated cells capable of division and differentiation into various types of cells and tissues.

Mouse Genes

Genes that are located within the genome of mice, often used as models to study gene function and regulation in genetics research.

Human Genome

The complete set of nucleic acid sequences for humans, encoding for the genetic instructions used in the development and functioning of human beings.