Answer the Following Questions Using the Information Below:
Weather Inc

question 82

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.
-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: $$\begin{array} { l r } \text { Direct materials } & \$ 400 \\\text { Direct manufacturing labor } & 120 \\\text { Variable manufacturing support } & 60 \\\text { Fixed manufacturing support } & 200 \\\quad \text { Total manufacturing costs } & 780 \\\text { Markup (20\% of total manufacturing costs) } & 156 \\\text { Estimated selling price } & \$ 936\end{array}$$ For Zolas' Heaters,what is the minimum acceptable price of this one-time-only special order?

• A) $580
• B) $780
• C) $520
• D) $1,014

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Definitions:

Fight Or Flight

A physiological response to perceived harmful events, attacks, or threats to survival, triggering a choice to either confront the situation aggressively or flee from it.

General Adaptation Syndrome

A theory by Hans Selye that describes the three stages of response to stress: alarm, resistance, and exhaustion.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or reflection.

Self-Esteem

A person's personal and subjective assessment of their own value in terms of emotions.