Answer the following question(s)using the information below.Rogers' Heaters is approached by Ms.Yukki, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Rogers' Heaters has excess capacity.The following per unit data apply for sales to regular customers:

-For Rogers' Heaters, what is the minimum acceptable price of this one-time-only special order?
A)$290
B)$390
C)$260
D)$507
E)$377

Question

Answer the following question(s)using the information below.Rogers' Heaters is approached by Ms.Yukki, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Rogers' Heaters has excess capacity.The following per unit data apply for sales to regular customers:
 
-For Rogers' Heaters, what is the minimum acceptable price of this one-time-only special order?
A)$290 
B)$390 
C)$260 
D)$507 
E)$377

Quizplus · Accepted Answer

The minimum acceptable price is the variable cost plus a markup. The variable cost is $260, and the markup is 10%, so the minimum acceptable price is $260 + 0.10 * $260 = $286.

Answer the Following Question(s)using the Information Below