Answer the Following Questions Using the Information Below:
Rockhampton Manufacturing

question 11

Multiple Choice

Answer the following questions using the information below:
Rockhampton Manufacturing is approached by a Brazilian customer to fulfil a one-time-only special order for a product similar to one offered to domestic customers. Rockhampton Manufacturing has a policy of adding a 10% mark-up to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:
$\begin{array}{lr}\text {Variable costs:}\\\text { Direct materials } & \$ 30 \\\text { Direct labour } & 10 \\\text { Manufacturing overhead } & 15 \\\text { Marketing costs } & 5\\\text { Fixed costs: }\\\quad \text { Manufacturing overhead } & 100 \\\quad \text { Marketing costs } & \underline{20} \\\text { Total costs } & 180 \\\text { Mark-up }(10 \%) & 18 \\\text { Estimated selling price } & \underline{ \$ 198}\end{array}$

-For Geelong Generators,what is the minimum acceptable price of this one-time-only special order?

• A)$1075
• B)$1000
• C)$1290
• D)$900

---

Definitions:

Penalized

Subject to punishment or sanctions due to violations of rules, laws, or regulations.

Employment Interviewing

The process of meeting and questioning job applicants to evaluate their suitability for a position.

Performance Appraisal

The systematic evaluation of an employee’s job performance and productivity with respect to the established job standards and objectives.

Appraisal Conference

A formal meeting between a manager and an employee to review the employee's performance, set goals, and discuss career progression.