Ultralinear Electronics Corporation Ultralinear Electronics Corporation manufactures and sells FM radios.Information on the prior year's operations (sales and production Model A1)is presented below:

Sales price per unit $30

Costs per unit:

Direct material 7

Direct labor 4

Overhead (50% variable) 6

Selling costs (40% variable) 10

Production in units 10,000

Sales in units 9,500

Refer to Ultralinear Electronics Corporation.Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit.If sold through regular channels,the minimum acceptable price will be A)$30. B)$33. C)$10. D)$4.

Question

Ultralinear Electronics Corporation Ultralinear Electronics Corporation manufactures and sells FM radios.Information on the prior year's operations (sales and production Model A1)is presented below:

Sales price per unit	$30
Costs per unit:
Direct material	7
Direct labor	4
Overhead (50% variable)	6
Selling costs (40% variable)	10
Production in units	10,000
Sales in units	9,500

Refer to Ultralinear Electronics Corporation.Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit.If sold through regular channels,the minimum acceptable price will be A)$30. B)$33. C)$10. D)$4.

Quizplus · Accepted Answer

The minimum acceptable price through regular channels would be the variable cost per unit, which includes direct material ($7), direct labor ($4), variable overhead (50% of $6 = $3), and variable selling costs (40% of $10 = $4), totaling $7 + $4 + $3 + $4 = $18. However, given the options provided and the context of the question suggesting a lower minimum price for disposal of remaining units, the closest relevant choice is $10, which seems to be a mistake in the question or options provided. The correct calculation leads to $18, not listed, indicating a potential error in the provided choices.

Ultralinear Electronics Corporation Ultralinear Electronics Corporation Manufactures and Sells FM Radios.Information on the Radios.Information