Memory Division of Missing Byte,Inc. The Memory Division of Missing Byte,Inc.produces a high-quality computer chip.Unit production costs (based on capacity production of 100,000 units per year)follow:
Refer to Memory Division of Missing Byte,Inc.Assume,for this question only,that the Memory Division is producing and selling at capacity.What is the minimum selling price that the division would consider on a "special order" of 1,000 chips on which no variable period costs would be incurred?
A)$100
B)$72
C)$81
D)$94

Question

Memory Division of Missing Byte,Inc. The Memory Division of Missing Byte,Inc.produces a high-quality computer chip.Unit production costs (based on capacity production of 100,000 units per year)follow:
 Refer to Memory Division of Missing Byte,Inc.Assume,for this question only,that the Memory Division is producing and selling at capacity.What is the minimum selling price that the division would consider on a "special order" of 1,000 chips on which no variable period costs would be incurred?
A)$100 
B)$72 
C)$81 
D)$94

Quizplus · Accepted Answer

The Answer of Memory Division of Missing Byte,Inc. The Memory Division of Missing Byte,Inc.produces a high-quality computer chip.Unit production costs (based on capacity production of 100,000 units per year)follow:
 Refer to Memory Division of Missing Byte,Inc.Assume,for this question only,that the Memory Division is producing and selling at capacity.What is the minimum selling price that the division would consider on a "special order" of 1,000 chips on which no variable period costs would be incurred?
A)$100 
B)$72 
C)$81 
D)$94