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K Marionette Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak
K Marionette Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 80% of capacity for the other six months of the year. The company has provided the following data for the year. No. of units produced and sold Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs This question: 4 point(s) possible 600,000 $40 $15 $1,000,000 $4 $600,000 per year per year per unit Marionette receives an offer to produce 5,000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) OA. $11 OB. $15 O C. $40 OD. $19 units per unit per unit
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