Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:

The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is:
A) $96.
B) $99.
C) $105.
D) $108.
E) None of the answers is correct.

Question

Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:

The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is:
A) $96. 
B) $99. 
C) $105. 
D) $108. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65:

The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is:
A) $96. 
B) $99. 
C) $105. 
D) $108. 
E) None of the answers is correct.

Forrest Corporation Manufactures Parts That Are Used in the Production