Your Company Produces 700,000 Widgets Per Year but Has the Capacity

question 88

Multiple Choice

Your company produces 700,000 widgets per year but has the capacity to produce 950,000 units.Company records show the following; full product costs = $85 per unit, which includes fixed manufacturing overhead of $11, and variable overhead of $4 per unit, and direct variable costs of $22, all based on the current 700,000 production run.If the company wanted to bid on a special one-time order, based on the above information only, what would be its minimum bid?

• A)$59
• B)$81
• C)$63
• D)$74
• E)$85

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Definitions:

McDonald's

A global fast-food restaurant chain known for its hamburgers, fries, and wide variety of quick-service meals.

Big Mac

A signature hamburger sold by the international fast-food chain McDonald's, often used as a reference in economic indices to measure purchasing power parity between nations.

Reach Percentage

A metric indicating the portion of the target audience that has seen an advertisement or content at least once over a specified period.

Target Market

The target market is the specific group of consumers identified as likely buyers of a product or service, characterized by demographic, geographic, and psychographic criteria.