Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10,000 computers each period: Brand X is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7,500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order.
A) $303
B) $250
C) $300
D) $265
E) $315

Question

Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10,000 computers each period:  Brand X is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7,500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order.
A) $303 
B) $250 
C) $300 
D) $265 
E) $315

Quizplus · Accepted Answer

The Answer of Brand X Computers makes and sells computers. Each computer sells for $400. The following cost data per computer are based on a full capacity of 10,000 computers each period:  Brand X is considering a special order for a sale of 2,500 computers to an overseas customer. The only selling costs that would be incurred for the order would be shipping charges of $15 per computer. Brand X is currently selling 7,500 computers through its regular orders. What should be the minimum selling price per computer in negotiating a price for the special order.
A) $303 
B) $250 
C) $300 
D) $265 
E) $315

Brand X Computers Makes and Sells Computers