A. Our company makes and sells small flexible solar panels. We sell the panels for $63 per unit; our manufacturing unit cost of $20 consists of: direct materials (DM) $8; direct labor (DL) $2; and manufacturing overhead (MOH) $10. 30% of MOH is variable; 70% of MOH is fixed.

Our selling costs consist of $6 per unit variable selling, and $74,000 per year fixed selling.

We received a special one-time take-it-or-leave it order for 8,000 units from a one-time customer. The special order requires some customization: additional DM costs of $5 per unit, and additional DL costs of $3 per unit. Also, we will have to rent a special piece of equipment to make this order, at a cost of $123,200. The special-order units will not incur any selling costs.

We can make the 8,000 special-order units using our excess capacity; our "regular" sales will thus not be affected.

The minimum acceptable price per unit for the special-order units is closest to (round to the nearest dollar): A. $36

B. $38

C. $40

D. $44

E. $47

B. Selected financial statistics about Worsell Company for fiscal years 2018 and 2019 are: In 2018, ROI = 17.6%; Sales = $6,830,000.

In 2019, ROI = 18.6%; NOI = $193,000; and turnover = 2.5.

Because of various improvements, Worsell's margin in 2019 was double Worsell's margin in 2018. Worsell's NOI in 2018 was closest to (rounded to the nearest thousand dollars):

A. $98,000

B. $117,000

C. $137,000

D. $144,000

E. $254,000