Answer the Following Questions Using the Information Below:
Alice Water

question 19

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 250 \\\text { Direct manufacturing labour } & 80 \\\text { Variable manufacturing support } & 50 \\\text { Fixed manufacturing support } & \underline { 100 } \\{ \text { Total manufacturing costs } } & 480 \\\text { Mark-up (30\%) } & \underline { 144 } \\\text { Estimated selling price } & \underline {\$ 624}\end{array}$$
-If Mrs Hu Qi wanted a long-term commitment for supplying this product,what price would MOST likely be quoted to her?

• A)$330
• B)$380
• C)$480
• D)$624

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effects on accounts, usually including a debit and credit.

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Items used in offices on a regular basis for the purpose of functionality and efficiency, such as pens, paper, and staplers.

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The action of calling public attention to products, services, or events, typically through paid announcements.

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The process of comparing a company’s financial records and balance with its bank statement to ensure consistency and accuracy in the recorded transactions.