Preston Wade Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $145 each. Preston has the capacity to produce as many as 60 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit: Direct materials $12.00 Direct labor $15.00 Variable overhead $ 3.00 Fixed overhead $ 5.00 Refer to the Preston Wade information above
Preston has received a special order from a local plant nursery for 40 birdhouses. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250. Preston requires a minimum $2,500 profit on any special order. The minimum price per birdhouse that Preston should charge the nursery is:
A) $65.00.
B) $98.75.
C) $95.00.
D) $145.00.
B
You might also like to view...
Which of the following is/are true regarding minority, passive investments?
a. An investor acquires the common stock of another entity for the interest, dividends, and capital gains anticipated from share ownership. b. The acquiring company's ownership percentage is sufficiently small that it cannot control or exert significant influence over the other company. c. U.S. GAAP and IFRS view investments of less than 20% of the voting shares of another company as minority, passive investments in most cases. d. An investor who intends to hold the shares for less than a year would classify them as current assets; if the expected holding period is longer, the investor would classify them as noncurrent assets. e. all of the above
A(n) ________ divides a project into more and more detailed components
Fill in the blanks with correct word
Which of the following is true of PSD areas under the Clean Air Act?
a. Only limited increase in air pollution is allowed. b. New construction of a major stationary source requires a permit from the state. c. To receive a permit, a new source must show it will use the best control technology available. d. All of these. e. None of these.
A promise is a declaration that something will or will not happen in the future
Indicate whether the statement is true or false