Use the Information Below to Answer the Following Question(s)

question 41

Multiple Choice

Use the information below to answer the following question(s) .Ferryman Products manufactures coffee tables.Ferryman Products has a policy of adding a 20% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

-Ferryman Products is approached by an overseas customer to fulfill a one-time-only special order for 1,000 units.All cost relationships remain the same except for a one-time setup charge of $20,000.No additional design, marketing, or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order?

• A)$134.75
• B)$457.25
• C)$114.75
• D)$161.70
• E)$122.75

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Definitions:

Report Design View

A feature in some software applications that allows users to define and customize the layout and appearance of reports.

Percent Format

A numerical format in spreadsheets and other applications that multiplies the cell's number by 100 and displays it with a percent sign.

UnitsSold

A metric indicating the number of units of a product sold over a specific period.

Price

The amount of money required to purchase a product or service, often influenced by factors such as cost of production, demand, and competition.