Mckerchie Inc

question 20

Multiple Choice

Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below: The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.
-The company has received a special,one-time-only order for 300 units of component G62.There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order.Assuming that Mckerchie has excess capacity and can fill the order without cutting back on the production of any product,what is the minimum price per unit on the special order below which the company should not go?

• A)$26
• B)$67
• C)$55
• D)$160

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Definitions:

Desegregation

The process of ending racial segregation in institutions and venues such as schools, buses, and public facilities, often through legal and social reforms.

Freedom Rides

A series of bus trips through the American South in 1961 by civil rights activists to challenge racial segregation in interstate bus terminals.

Sit-Ins

A form of protest in which individuals occupy an area, refusing to move to bring attention to a cause or injustice, often used during the civil rights movement.

Racial Justice

The systematic fair treatment of people of all races that results in equitable opportunities and outcomes for everyone.