Geneva Company Manufactures Dolls That Are Sold to Various Customers

question 158

Multiple Choice

Geneva Company manufactures dolls that are sold to various customers.The company works at full capacity for half the year to meet peak demand,and operates at 80% capacity for the other half of the year.The following information is provided: Geneva receives a purchase order to make 5,000 dolls as a one-time event.The good news is that this order is during a period when Geneva does have sufficient excess capacity.What is the lowest selling price Geneva should accept for this purchase order?

• A)$35.00
• B)$26.00
• C)$29.50
• D)$23.50
• E)$25.00

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Definitions:

Steering Linkage

The system of rods, levers, and bars that connects a vehicle's steering wheel to its wheels, allowing the driver to control the direction of the vehicle.

Bump Steer

A change in the steering angle of a vehicle’s wheel as a result of suspension movement, typically caused by bumps or irregularities on the road surface.

Crosslink System

A type of polymer structure where chains are connected by links, improving the material's strength and stability.

Idler Arm

A component in a vehicle's steering system that supports the steering linkage and helps maintain correct wheel alignment.