14 Sit Down, Inc. makes and sells gaming controllers. Each gaming controller regularly sells for $50. The following manufacturing cost per unit information is based on operating at full capacity of 50,000 controllers produced each year: Per Unit: Direct materials Direct labor Variable OH Fixed OH $20.00 $9.00 $4.00 $6.00 The firm also incurs selling and administrative costs of $3.00 per controller sold for shipping and incurs $60,000 each year in fixed selling administrative costs for advertising and administrative salaries. A special order has been received by the firm for a sale of 7,000 controllers to a customer. The firm currently produces and sells 30,000 controllers through regular sales each year, so there is plenty of excess capacity to fulfil this special order. The special order will not increase total Fixed OH or total Fixed Selling and Administrative costs. In order to ensure they will not incur a loss on this special order if they accept it, what is the lowest price per controller that the firm should charge on this special order? a. $39 Ob. $44 Oc. $36 d. $42 Oe. $33 QUESTION 15 Top of The World Corp. manufactures and sells two products: wooden bookshelves and wooden entertainment centers. Each product can be sold to the customer either 1) unpainted/unassembled or 2) processed further by painting and assembling the product for the customer. Information about these two products appears below: Bookshelves Entertainment Centers Sales price if unpainted/unassembled Painting and assembling costs $100 $35 $250 $60 Sales price if painted/assembled $150 $300 What is the financial advantage (disadvantage) per unit for the company of painting and assembling the bookshelves? O a. $150 O b. ($35) OC. $15 Od. $115 O e. ($10)