Answer the Following Questions Using the Information Below

question 69

Multiple Choice

Answer the following questions using the information below:
Black Forrest manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $180 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 50% markup to full costs.
-Black Forrest is invited to bid on a one-time-only special order to supply 100 rustic tables.What is the lowest price Black Forrest should bid on this special order?

• A) $12,600
• B) $14,400
• C) $18,000
• D) $23,000

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Definitions:

Pinpoint-sized

Extremely small, as in the size of a pin's point, usually used to describe something very tiny in diameter.

Lordosis

A condition characterized by an excessive inward curve of the spine, typically in the lower back.

Kyphosis

A spinal disorder leading to an excessive outward curve of the spine, causing a hunchback or slouching posture.

Posterior Curvature

Refers to the backward curve of a spinal column or another anatomical structure, which can be a normal or abnormal physiologic feature.