The Young Company has gathered the following information for a unit of its most popular product: Direct materials$12 Direct labor 6 Overhead (40% variable) 10 Cost to manufacture 28 Desired markup (50%) 14 Target selling price$42 The above cost information is based on 10,000 units. A distributor has offered to buy 2,000 units at a price of $32 per unit. The distributor claims this special order would not disturb regular sales at $42. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?
A. 1,000 units
B. 0 units
C. 2,000 units
D. 950 units
Answer: D
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A cash budget
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Once all five steps of the HURIER listening model have been successfully completed, which final stage can take place?
A. hearing B. understanding C. remembering D. responding
Which of the following is a reason that marketing to Hispanics has proven to be a challenge?
A. Hispanics prefer imports to American-made products; they tend to be ethnocentric in their product preferences. B. The Hispanic subculture is diverse. C. Hispanics don't consider advertising a credible source of product information. D. Assimilation is valued and the Hispanic community finds cultural target marketing offensive. E. Hispanics communities are spread across the entire country and therefore difficult to target.