A Producer Incurred Costs of $54,000 for Labor and Materials

question 77

Multiple Choice

A producer incurred costs of $54,000 for labor and materials and $26,000 for fixed overhead expenses in a year. The firm produced 20,000 units during the year. If the producer desires a profit of $1 per unit in the coming year, what should the producer's selling price be using average-cost pricing?

• A) $3.70.
• B) $2.30.
• C) $5.00.
• D) $6.00.
• E) Cannot be determined from the information provided.

---

Definitions:

Amino Acids

The building blocks of proteins, consisting of a basic amino group, an acidic carboxyl group, and a unique side chain.

Hydrogen Bonds

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other.

Anticodons

Sequences of three nucleotides on transfer RNA molecules that are complementary to codons on messenger RNA and ensure the correct amino acids are added during protein synthesis.