Answer the Following Questions Using the Information Below

question 59

Multiple Choice

Answer the following questions using the information below:
Northwoods manufactures rustic furniture.The cost accounting system estimates manufacturing costs to be $100 per table,consisting of 80% variable costs and 20% fixed costs.The company has surplus capacity available.It is Northwoods' policy to add a 50% mark-up to full costs.
-Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables.What is the lowest price Northwoods should bid on this special order?

• A)$9000
• B)$8000
• C)$13 500
• D)$6300

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Definitions:

Random Samples

The selection of a subset of individuals from a larger set where each member of the subset has an equal probability of being chosen. This ensures that the sample represents the overall population.

Homogeneous

Composed of parts or elements that are all of the same kind; not heterogeneous.

Representative

Serving as a typical example of a group or category of things; in statistics, it refers to a sample that accurately reflects the characteristics of the larger population.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.