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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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