Question
The Cork Company has been sent a special order of 6,000 dongles to be shipped at the end of the month at a selling price
The Cork Company has been sent a special order of 6,000 dongles to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 dongles per month with total fixed production costs of $144,000. At present, the company is selling 80,000 dongles per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one dongle is: Variable Production Cost $4.60 Fixed Production Cost $1.80 Variable Selling Expense $1.00 At what selling price per unit should Cork be indifferent between accepting or rejecting the special offer? $7.40. $7.70. $6.40. $4.90. None of the answers provided is correct
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