Farnsworth Television Makes and Sells Portable Television Sets

question 135

Multiple Choice

Farnsworth Television makes and sells portable television sets.Each television regularly sells for $200.The following cost data per television are based on a full capacity of 12, 000 televisions produced each period: A special order has been received by Farnsworth for a sale of 2, 500 televisions to an overseas customer.The only selling costs that would be incurred on this order would be $10 per television for shipping.Farnsworth is now selling 7, 200 televisions through regular distributors each period.What should be the minimum selling price per television in negotiating a price for this special order?

• A)$200
• B)$166
• C)$178
• D)$176

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