Answer the Following Questions Using the Information Below:
Coroid Manufacturers

question 168

Multiple Choice

Answer the following questions using the information below:
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
$\begin{array}{l}\text { Variable costs: }\\\text { Direct materials } & \$ 120 \\\text { Direct labor } & 60 \\\text { Manufacturing support } & 105 \\\text { Marketing costs } & 45\\\text { Fixed costs: }\\\text { Manufacturing support } & 135 \\\text { Marketing costs } & \underline{45}\\\text { Total costs } & 510 \\\text { Markup (50\%) } & 255 \\\text { Targeted selling price } & \$ 765\end{array}$
-For Coroid Manufacturers Inc.,what is the minimum acceptable price of this special order?

• A) $330
• B) $290
• C) $340
• D) $510

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Definitions:

Drudgery

Tedious, hard, and repetitive work that is often seen as unenjoyable.

Competitive Factor Markets

Markets where factors of production (like labor, capital) are bought and sold, with many sellers and buyers leading to competitive prices.

Prices

The monetary value assigned to goods and services, determining how much consumers need to pay to obtain them.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.