Solved

Gorski Corporation Manufactures Parts That Are Used in the Production

Question 27

Multiple Choice

Gorski Corporation manufactures parts that are used in the production of washers and dryers.The following costs are associated with part no.65: Gorski 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 Spain 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 Gorski has excess capacity,the minimum price that Gorski should charge the Spanish manufacturer is: A) $96. B) $99. C) $105. D) $108. E) some other amount.
The company received a special-order inquiry from an appliance manufacturer in Spain 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 Gorski has excess capacity,the minimum price that Gorski should charge the Spanish manufacturer is:


A) $96.
B) $99.
C) $105.
D) $108.
E) some other amount.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents