Answer the Following Questions Using the Information Below

question 181

Multiple Choice

Answer the following questions using the information below:
Weather Inc., manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be $190 per air conditioner, consisting of 75% variable costs and 25% fixed costs. The company has surplus capacity available. It is Weather Inc.'s policy to add a 30% markup to full costs.
-Weather Inc.,is invited to bid on a one-time-only special order to supply 100 air conditioners.What is the lowest price Weather Inc.should bid on this special order?

• A) $14,250
• B) $18,525
• C) $25,000
• D) $24,700

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Definitions:

Trucking Industry

A sector of the transportation industry that specializes in the movement of goods and materials over land, typically using large vehicles like trucks.

Flexibility

The capability to adapt or change according to different conditions, requirements, or environments, often viewed as a desirable quality in various contexts.

Equipment Options

Refers to the variety of choices available for machinery and tools required for the production process or offered to customers.

Qualified Drivers

Individuals who have met specific standards and hold the necessary licenses to operate vehicles professionally.