Answer the Following Question(s)using the Information Below

question 116

Multiple Choice

Answer the following question(s) using the information below.Rogers' Heaters is approached by Ms.Yukki, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Rogers' Heaters has excess capacity.The following per unit data apply for sales to regular customers:

-For Rogers' Heaters, what is the minimum acceptable price of this one-time-only special order?

• A)$290
• B)$390
• C)$260
• D)$507
• E)$377

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Definitions:

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and maintenance.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Fuel Costs

Expenses incurred from the consumption of fuel, significant in operations involving transportation and machinery.

Pricing Policies

The strategies and methods a company uses to determine how to price its products or services.