A Company Is Currently Operating at 80% Capacity Producing 5,000

question 116

Multiple Choice

A company is currently operating at 80% capacity producing 5,000 units.Current cost information relating to this production is shown in the table below: The company has been approached by a customer with a request for a 100-unit special order.What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

• A)Any amount over $34 per unit.
• B)Any amount over $20 per unit.
• C)Any amount over $14 per unit.
• D)Any amount over $9 per unit.
• E)Any amount over $5 per unit.

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Definitions:

Spinal Nerves

Nerves that originate from the spinal cord and branch out to various parts of the body, carrying messages to and from the brain.

Vertebral Column

A series of vertebrae extending from the skull to the lower back, providing the main support for the upper body and encasing the spinal cord.

Trochlea

Structure shaped like or serving as a pulley or spool.

Humerus

The extended arm bone stretching from the shoulder down to the elbow.