Quick Connect manufactures high-tech cell phones.Quick Connect has a policy of adding a 25% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

Quick Connect Products is approached by an overseas customer to fulfill a one-time-only special order for 150 units.All cost relationships remain the same except for a one-time setup charge of $2025.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order?
A)$30.20
B)$173.20
C)$186.70
D)$188.50

Question

Quick Connect manufactures high-tech cell phones.Quick Connect has a policy of adding a 25% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

Quick Connect Products is approached by an overseas customer to fulfill a one-time-only special order for 150 units.All cost relationships remain the same except for a one-time setup charge of $2025.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order?
A)$30.20 
B)$173.20 
C)$186.70 
D)$188.50

Quizplus · Accepted Answer

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Quick Connect Manufactures High-Tech Cell Phones