Answer the Following Questions Using the Information Below

question 75

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.
-A medium sized motel chain is currently expanding and has decided to create more rooms and air condition all of its rooms,which are currently not air conditioned.Weather Inc.is invited to submit a bid to the motel chain.What per unit price will Weather Inc.most likely bid for this special order of 200 units? Assume that the price is being fixed for a long-term commitment.

• A) $190.00 per unit
• B) $142.50 per unit
• C) $247.00 per unit
• D) $230.00 per unit

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Definitions:

Social Comparison Theory

An idea proposing that personal and social esteem is gauged by individuals through comparison with others.

Therapeutic Factors

Elements in therapy that contribute to the healing process, including the therapeutic relationship, hope, and the use of techniques.

Freud's Concepts

Theories and ideas proposed by Sigmund Freud that focus on the unconscious mind, sexuality, dream analysis, and the dynamics of personality development.

Humanistic Approach

A psychological perspective emphasizing respect for the individual and a focus on each person's unique potential and importance of human values.