Assume the Following Cost Data: Per-Unit Costs

question 133

Multiple Choice

Assume the following cost data: Per-unit costs:
Direct material $6
Direct labour $4
Variable overhead $2
Variable selling $4
Fixed overhead $300
Fixed selling $400
A special order for 100 units is received. The buyer wants his name stamped on each unit. This will increase labour costs by $0.25 per unit and cost $300 for the stamping machine. What price must be charged to earn $300 on the special order?

• A)$1,925
• B)$1,775
• C)$2,225
• D)$2,075

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Definitions:

GABA

Gamma-aminobutyric acid (GABA) is the primary inhibitory neurotransmitter in the brain, playing a crucial role in regulating neuronal excitability and involved in anxiety reduction and sleep regulation.

Reduced Anxiety

A state or condition where there is a decrease in feelings of nervousness, worry, or unease.

Sensory Perceptual

Relating to the perception of sensory information from the environment, including how the brain interprets stimuli from the senses.

Benzodiazepines

A class of psychoactive drugs known to enhance the effect of the neurotransmitter GABA, used to treat conditions such as anxiety, insomnia, and seizures.