Question
Budget TV Ltd makes and sells inexpensive televisions. Each television regularly sells for 210. The following cost data per television is based on a
Budget TV Ltd makes and sells inexpensive televisions. Each television regularly sells for 210. The following cost data per television is based on a full capacity of 10,00 televisions produced each period: Direct Materials Direct Labour 80 60 Manufacturing Overheads (70% Variable40 and 30% unavoidable fixed) Budget TV Ltd has received a special order for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be 6 per television for shipping. Budget TV Ltd is now selling 6,000 televisions through regular channels each period. What is the minimum selling price per television that TV Ltd should consider acceptable when negotiating a price for this special order: Select one: O a. Any price above 180 O b. Any price above 174 c. Any price above 168 d. 210
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