A Company Is Currently Operating at 80% Capacity Producing 5,000

question 24

Multiple Choice

A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below: The company has been approached by a customer with a request for a 100-unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?

• A) Any amount over $34 per unit.
• B) Any amount over $20 per unit.
• C) Any amount over $14 per unit.
• D) Any amount over $9 per unit.
• E) Any amount over $5 per unit.