Answer the Following Questions Using the Information Below:
Alice Water

question 136

Multiple Choice

Answer the following questions using the information below:
Alice Water Coolers is approached by Mrs Hu Qi,a new customer,to fulfil a large one-time-only special order for a product similar to one offered to regular customers.Alice Water Coolers has excess capacity.The following per unit data apply for sales to regular customers:
$$\begin{array} { l r } \text { Direct materials } & \$ 250 \\\text { Direct manufacturing labour } & 80 \\\text { Variable manufacturing support } & 50 \\\text { Fixed manufacturing support } & \underline { 100 } \\{ \text { Total manufacturing costs } } & 480 \\\text { Mark-up (30\%) } & \underline { 144 } \\\text { Estimated selling price } & \underline {\$ 624}\end{array}$$
-For Alice Water Coolers,what is the minimum acceptable price of this one-time-only special order?

• A)$380
• B)$330
• C)$624
• D)$480

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Definitions:

Basilar Membrane

A structure in the cochlea of the inner ear that plays a critical role in the sense of hearing by vibrating in response to sound, helping to translate sound waves into neural signals.

Olfactory Epithelium

The lining of the roof of the nasal cavity, containing a sheet of receptor cells for smell.

Papillae

Rounded bumps above the tongue’s surface that contain the taste buds, the receptors for taste.

Pinnae

The visible part of the ear that protrudes from each side of the head, playing a role in collecting sound vibrations and directing them into the ear canal.