14 & 15

Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per televisions are based on a full capacity of 12,000 televisions produced each period: A special order has been received by Farmsworth for a sale of 2, 500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $15 per television for shipping. Farnsworth is now selling 7, 200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order? (Choose the closest answer). $188 $166 $176 $181. Ellyn Co. specializes in two products: records and cassettes. The company recorded a net operating income last y ear of $80,000, and provided the following information from last year using its products as segments: What wore the total fixed expenses for Ellyn Co. last year? $50,000 $180,000 $200,000 $150,000 $220,000