Winder Corporation Is a Specialty Component Manufacturer with Idle Capacity

question 131

Multiple Choice

Winder Corporation is a specialty component manufacturer with idle capacity.Management would like to use its extra capacity to generate additional profits.A potential customer has offered to buy 3,000 units of component QEA.Each unit of QEA requires 5 units of material F85 and 5 units of material E71.Data concerning these two materials follow: Material F85 is in use in many of the company's products and is routinely replenished.Material E71 is no longer used by the company in any of its normal products and existing stocks would not be replenished once they are used up.

What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product QEA?

• A)$126,702
• B)$141,750
• C)$126,295
• D)$145,965

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Definitions:

Glutamate

A key amino acid that functions as a neurotransmitter in the brain, playing a role in learning and memory.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, providing cushioning and nutrient transport.

Tremors

Involuntary, rhythmic muscle contractions that cause shaking movements in one or more parts of the body.

Somatosensory Area

A region of the brain that processes and interprets sensations from different parts of the body.