9) If a company wants to be a price-taker, which of the following strategies should be taken? 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. 10) Fox, Inc. manufactures and sells pens for $7 each. Walton Corp. has offered Fox, Inc. $3 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen, using absorption costing, is SI per unit and consists of variable costs of $0.75 per pen and fixed overhead costs of $0.25 per pen. Assume that Fox, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? A) increase of $14,000 B) decrease of $14,000 C) increase of $7,875 D) decrease of $7,875 11) Paradiso Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 60% of capacity for the other six months of the year. The company has provided the following data for the year sales price Variable manufacturing costs $30per unit $20per unit $1,000,000per year Variable selling and administrative costs ixed selling and administrative costs S3per unit $600 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) S30 C) $20 D) $23