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:

Portuguese Colony

A territory overseen and controlled by Portugal during its period of colonial expansion, particularly from the 15th to the 20th centuries.

Colonial Economy

Refers to the economic system and practices implemented by colonial powers, often characterized by exploitation and exportation of raw materials from the colonized territories to benefit the colonial country.

Canary Island

A group of Spanish islands located off the northwest coast of Africa, noted for their unique ecosystems and cultural heritage.