Quick Connect Manufactures High-Tech Cell Phones For Long-Run Pricing of the Cell Phones,what Price Will Most

question 195

Multiple Choice

Quick Connect manufactures high-tech cell phones.Quick Connect 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: $$\begin{array} { l r } \text { Output units } & 1,250 \text { phones } \\\text { Machine-hours } & 750 \text { hours } \\\text { Direct manufacturing labor-hours } & 700 \text { hours } \\& \\\text { Direct materials per unit } & \$ 20 \\\text { Direct manufacturing labor per hour } & \$ 8 \\\text { Variable manufacturing overhead costs } & \$ 175,000.00 \\\text { Fixed manufacturing overhead costs } & \$ 126,300 \\\text { Product and process design costs } & \$ 143,000 \\\text { Marketing and distribution costs } & \$ 153,645\end{array}$$ For long-run pricing of the cell phones,what price will most likely be used by Quick Connect?

• A) $95.00
• B) $135.00
• C) $175.00
• D) $210.00

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Definitions:

Confounded

A term used in experimental research to describe a situation where the effect of one variable cannot be separated from the effect of another, complicating the interpretation of results.

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