A Company Is Considering a Special Order for 1,000 Units

question 119

Multiple Choice

A company is considering a special order for 1,000 units to be priced at $8.90 (the normal price would be $11.50) .The order would require specialized materials costing $4.00 per unit.Direct labor and variable factory overhead would cost $2.15 per unit.Fixed factory overhead is $1.20 per unit.However, the company has excess capacity and acceptance of the order would not raise total fixed factory overhead.The warehouse, however, would have to add capacity costing $1,300.Which of the following is relevant to the special order?

• A) $11.50 normal selling price
• B) $1.20 fixed factory overhead per unit
• C) $7.35 spent on donuts and coffee
• D) $8.90 selling price per unit of special order
• E) None of these.

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Definitions:

Dispersed Collective Behaviours

Group behaviors that are spread out across vast distances, often mediated through technology, lacking a centralized physical location.

Collective Behaviours

Actions and norms that are developed by a group and differ from the usual social conventions, often arising in response to an event, situation, or collective mood.

Evolutionary Theory

Evolutionary Theory is a scientific theory that explains the diversity of life on Earth, positing that species change over time through processes such as natural selection and genetic mutation.

Genetic Evolution

The process by which the inherited features of an organism change over generations through mechanisms such as mutation, natural selection, and genetic drift, leading to biodiversity.