Farnsworth Television makes and sells portable television sets. Each television
ID: 2654675 • Letter: F
Question
Farnsworth Television makes and sells portable television sets. Each television regularly sells for $260. The following cost data per television are based on a full capacity of 15,000 televisions produced each period:
A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Farnsworth is now selling 7,500 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order?
$260
$206
$215
$216
Farnsworth Television makes and sells portable television sets. Each television regularly sells for $260. The following cost data per television are based on a full capacity of 15,000 televisions produced each period:
Explanation / Answer
tHE CORRECT ANSWER IS $ 216
Negotiating Price Material 95 Labour 75 Overhead 45*80% 36 Shipping Cost 10 Negotiable Cost 216Related Questions
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