Answer the Following Question(s)using the Information Below

question 21

Multiple Choice

Answer the following question(s) using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-For Grant's Kitchens, what is the minimum acceptable price of this one-time-only special order?

• A)$830
• B)$900
• C)$930
• D)$1,440
• E)$800

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Definitions:

Chocolate Market

The economic marketplace that encompasses the production, distribution, and sale of chocolate products.

Producer Surplus

The gap between the price at which suppliers are prepared to offer a product and the actual amount they get for it.

Upward-Sloping Supply Curve

A graph showing that as the price of a good increases, the amount suppliers are willing to produce also increases.

Producer Surplus

The dissimilarity between the baseline price producers accept for a good or service and the actual price paid to them.