In advance, thank you thank you thank you**********It is important i know this as it may be part of my upcoming material and knowledge of this may be needed in order to participate in class*** ALSO IM SORRY THAT TECHNICALLY I AM ASKING MORE THAN ONE QUESTION! Do know i appreciate everything and anything you are willing to answer!!!!!

1. Vanana Tees sells its cool-zone t-shirts for $24 each. Unit product costs are as follows: Direct materials $4.50 Direct labor 1.80 Manufacturing overhead 3.50 Total $9.80 A special order to purchase 1,200 shirts was recently received. There is enough capacity to fill the order. Filling this order will not disrupt current operations. Vanana expects to incur an additional $1.10 per unit for additional labor costs due to a slight modification the buyer wants made to the shirts. The manufacturing overhead costs consist of 30% allocated fixed costs. In negotiating a price, how much is Vanana Tees' minimum acceptable selling price per t-shirt? A) $9.85 B) $7.35 C) $8.75 D) $6.30 2. Why is cost-plus pricing criticized? A) It is inherently circular for manufacturing firms. B) It includes selling and administrative costs in determining the product cost. C) It requires a high level of technical expertise to price products using this method. D) It does not consider the fixed manufacturing overhead in determining the product cost. 3. The most difficult part of determining the profit-maximizing price is determining the demand function. A) True B) False 4. Which of the following does not appear on the cash budget? A) Purchase of long-lived assets B) Collection of credit sales C) Beginning cash balance D) Cost of goods sold 5. A company should never price a product below full cost. A) True B) False