Preston Wade Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $145 each. Preston has the capacity to produce as many as 60 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit:
Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery for 40 birdhouses. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250. Preston requires a minimum $2,500 profit on any special order. The minimum price per birdhouse that Preston should charge the nursery is:
A) $65.00.
B) $98.75.
C) $95.00.
D) $145.00.
Correct Answer:
Verified
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