Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period: A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Farnsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order?
A)$200
B)$166
C)$178
D)$176

Question

Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period:  A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Farnsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order?
A)$200 
B)$166 
C)$178 
D)$176

Quizplus · Accepted Answer

The Answer of Farnsworth Television makes and sells portable television sets. Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period:  A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Farnsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order?
A)$200 
B)$166 
C)$178 
D)$176

Farnsworth Television Makes and Sells Portable Television Sets