Your Company Produces 700,000 Widgets Per Year but Has the Capacity

question 88

Multiple Choice

Your company produces 700,000 widgets per year but has the capacity to produce 950,000 units.Company records show the following; full product costs = $85 per unit, which includes fixed manufacturing overhead of $11, and variable overhead of $4 per unit, and direct variable costs of $22, all based on the current 700,000 production run.If the company wanted to bid on a special one-time order, based on the above information only, what would be its minimum bid?

• A)$59
• B)$81
• C)$63
• D)$74
• E)$85

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Definitions:

Synaptic Cleft

The small gap between neighboring neurons, across which neurotransmitters are released to transmit signals from one neuron to another.

Presynaptic Terminal

The end of a neuron from which neurotransmitters are released to communicate with a neighboring neuron's receptor site.

Sarcolemma

The Sarcolemma is the cell membrane surrounding muscle fibers, critical for receiving and conducting stimuli and maintaining the integrity of muscle cells.

Clostridium Botulinum

A bacterium that produces botulinum toxin, which can cause botulism, a serious and potentially fatal illness.