Ch10 in-class problems 205 202108 1. Special Order Dainty Doll Company makes and sells about 600,000 dolls each year, running at full capacity for six months (to meet holiday demand) and at 80% of capacity for the other six months of the year. The dolls sell for $60 each and have variable costs of $19 each ($15/doll, manufacturing; $4/doll, selling). The fixed costs per year include $1 million of manufacturing cost and $600,000 of selling and administrative costs. Eldridge Fitzbitter, a local carnival impresario, approaches Dainty with an offer to buy 5,000 dolls for a show that's coming to town. Eldridge wants a special price because he needs the dolls in April, which is during Gary's slow six-month period. What's the lowest price at which you would recommend Gary sell the dolls to Eldridge? A) $11 B) $40 C) $15 D) $19