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

---

Definitions:

Morphemes

The smallest units of meaning in a language, which can be words themselves or parts of words.

Adjectives

Words that describe, modify, or qualify nouns and pronouns, providing more information about them.

English Language

A West Germanic language that originated from the Anglo-Frisian dialects brought to Britain by Germanic invaders and now serves as a global lingua franca.

Syntax

The arrangement of words and phrases to create well-formed sentences in a language, fundamental to the study of linguistics.