Question
ANDREI COMPANY IS A MAKER OF PRODUCT X WHICH IS USED AS A RAW MATERIAL OF A HIGHLY SOPHISTICATED EQUIPMENT.PRODUCT X HAS THE FOLLOWING DATA
ANDREI COMPANY IS A MAKER OF PRODUCT X WHICH IS USED AS A RAW MATERIAL OF A HIGHLY SOPHISTICATED EQUIPMENT.PRODUCT X HAS THE FOLLOWING DATA PER UNIT: SELLING PRICE, 1,000; VARIABLE COSTS: MATERIALS, P 200, LABOR, P 100, FACTORY OVERHEAD, P50 AND SHIPPING , P 20. FIXED COSTS: FACTORY OVERHEAD, P 60; SELLING AND ADMINISTRATIVE COSTS, P 40 OR TOTAL COSTS OF P470. DURING THE MONTH THE COMPANY RECEIVED A SPECIAL ONE TIME ORDER FOR 2,000 UNITS OF PRODUCT X. ASSUME THE COMPANY IS OPERATING AT FULL CAPACITY AND THAT IT DOES NOT WANT TO INCUR A LOSS FROM THE ORDER, THE MINIMUM ACCEPTABLE PRICE IS
a. 1,000 b. 470 c. 530 d. 1470
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