Zolas' Heaters Is Approached by Ms If MsLeila Wanted a Long-Term Commitment,and Not a One-Time-Special Order,for Supplying

question 127

Multiple Choice

Zolas' Heaters is approached by Ms.Leila,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Zolas' Heaters has excess capacity.The following per unit data apply for sales to regular customers: $$\begin{array} { l r } \text { Direct materials } & \$ 400 \\\text { Direct manufacturing labor } & 120 \\\text { Variable manufacturing support } & 60 \\\text { Fixed manufacturing support } & 200 \\\quad \text { Total manufacturing costs } & 780 \\\text { Markup (20\% of total manufacturing costs) } & 156 \\\text { Estimated selling price } & \$ 936\end{array}$$ If Ms.Leila wanted a long-term commitment,and not a one-time-special order,for supplying this product,calculate the most likely price to be quoted assuming the markup remains same?

• A) $780
• B) $580
• C) $520
• D) $936

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Definitions:

Immunity

The body's ability to resist or eliminate potentially harmful foreign materials or abnormal cells, including pathogens and cancer cells.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific signs or symptoms or that affects a specific location and is not simply a direct result of physical injury.

Healthcare-associated Infection

Infections patients can get while receiving medical treatment in a healthcare facility, often preventable and posing significant risks to patient safety.

Staph Bacteria

A group of bacteria, belonging to the genus Staphylococcus, that can cause a variety of diseases through infection.