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Gen Company Has Provided the Following Per Unit Information Pertaining

Question 11

Multiple Choice

Gen Company has provided the following per unit information pertaining to the production and sale Of 2,000 units of generators:
Gen Company has provided the following per unit information pertaining to the production and sale Of 2,000 units of generators:   Gen has received a special sales order for 1,000 units of this generator. Given that Gen is currently Operating at capacity, Gen will have to increase its fixed costs by 40% in order to accommodate the Special sales order. The variable selling expenses associated with this special sales order will be Reduced by $8 per unit. What is the minimum per unit selling price that Gen is willing to accept? A)  $442 B)  $434 C)  $464 D)  $494 Gen has received a special sales order for 1,000 units of this generator. Given that Gen is currently Operating at capacity, Gen will have to increase its fixed costs by 40% in order to accommodate the Special sales order. The variable selling expenses associated with this special sales order will be Reduced by $8 per unit. What is the minimum per unit selling price that Gen is willing to accept?


A) $442
B) $434
C) $464
D) $494

Correct Answer:

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