Answer the Following Questions Using the Information Below

question 202

Multiple Choice

Answer the following questions using the information below:
Black Forrest manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $240 per table, consisting of 60% variable costs and 40% fixed costs. The company has surplus capacity available. It is Black Forrest policy to add a 50% markup to full costs.
-Black Forrest is invited to bid on a one-time-only special order to supply 200 rustic tables. What is the lowest price Black Forrest should bid on this special order?

• A)$43,200
• B)$14,400
• C)$24,000
• D)$28,800

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Definitions:

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

REM Paralysis

A phenomenon during the REM (Rapid Eye Movement) sleep phase where the body is temporarily paralyzed, preventing the sleeper from acting out dreams.

Memory

The faculty by which the mind stores and remembers information.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.