Answer the Following Questions Using the Information Below

question 108

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.
-A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Black Forrest is invited to submit a bid to the hotel chain. What per unit price will Black Forrest most likely bid on this long-term order?

• A)$144 per unit
• B)$216 per unit
• C)$360 per unit
• D)$240 per unit

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Definitions:

External Ear

The outer portion of the ear, consisting of the pinna and the ear canal, which helps direct sound waves into the ear.

Middle Ear

The part of the ear located between the eardrum and the inner ear that contains three bones which amplify sound.

Hz

Hertz, the unit of frequency in the International System of Units (SI), denoting one cycle per second.

Ossicles

Small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear; includes the malleus, incus, and stapes.