Wolff Co Sells Product P at a Price of $38 a a Unit

question 34

Multiple Choice

Wolff Co. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labour $10, and overhead $12 (25% fixed and 75% variable) . Wolff has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be $3 per unit. The minimum selling price per unit should be:

• A)$24
• B)$30
• C)$32
• D)$36

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Definitions:

S-cam Actuated Brake Shoes

Part of a drum brake system where an S-shaped cam is used to push the brake shoes outwards against the drum to slow or stop the vehicle.

Pair

Two things that are designed or used together or considered in relation to each other, often matching or corresponding in form or function.

Trailer Service Brake Signal

An electrical or air signal from the towing vehicle to the trailer, activating the trailer's service brakes.

Tractor Protection Valve

A safety device in air brake systems on trucks and trailers, designed to preserve air pressure in the tractor’s brakes in the event of a trailer air supply failure.