Quick Connect Manufactures High-Tech Cell Phones Quick Connect Products Is Approached by an Overseas Customer to of Adding

question 169

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: $\begin{array}{lr}\text { Output units } & 1,250 \text { phones } \\\text { Machine-hours } & 750 \text { hours } \\\text { Direct manufacturing labor-hours } & 700 \text { hours }\\\\\text { Direct materials per unit } & \$ 20 \\\text { Direct manufacturing labor per hour } & \$ 8 \\\text { Variable manufacturing overhead costs } & \$ 175,000,00 \\\text { Fixed manufacturing overhead costs } & \$ 126,300 \\\text { Product and process design costs } & \$ 143,000 \\\text { Marketing and distribution costs } & \$ 153,645\end{array}$ Quick Connect Products is approached by an overseas customer to fulfill a one-time-only special order for 120 units.All cost relationships remain the same except for a one-time setup charge of $1,500.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order?

• A) $24.48
• B) $160.48
• C) $176.98
• D) $200.00

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