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9) If a company wants to b A) Enter a competitive market and focus on cost cutting B) Produce a unique product. C) Exploit the

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9) If a company wants to b A) Enter a competitive market and focus on cost cutting B) Produce a unique product. C) Exploit the value of a fashionable brand name D) Differentiate the product clearly from the competitors. e a price-taker, which of the following strategies should be taken? 10) Fox, Inc. manufactures and sells pens for $7 each Walton Corp. has offered Fox, Inc. s$3 per pen for a oe time order of 3,500 pens. The total manufacturing cost per pen, using absorption costing, is $1 per unit and consists of variable costs of $0.75 pen Fox, Inc. has 5 per pen and fixed overhead costs of $0.25 per pen. Assume that egular sales. excess capacity and that the special pricing order would not adversely affect r ge in operating income that would result from accepting the special pricing or A) increase of $14,000 B) decrease of $14,000 C) increase of $7,875 D) decrease of $7,875 ufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak demand; the tnanufacturing facility operates at 60% of capacity for the other six months of the year. The company has provided the following data for the year 11) Parad iso Company man No. of units produced and sold 500,000units 30per unit $20per unit les price Variable manufacturing costs ixed manufacturing costs $1,000,000per year 3per unit ariable selling and administrative costs 5600,000per year ixed sell ling and administrative costs Paradiso receives an offer to produce 7,000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? A) $17 B) 530 C) $20 D) 523

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