Famsworth Television makes and sells portable television sets. Each television r

Question

Famsworth 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 Faresworth for a sale of 2.5OO televisions. to an oversea customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Famwoni it rxm telling 7200 televisions through regular distributors each. What should be the minimum selling price per television in a price for this special order? 14. A customer has requested that Gamba Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit. While the product would be modified slightly for the special order, product Q41's normal unit product cost is $21.40:

Explanation / Answer

13. D

Beacuase company is not working on full capacity , first of all there is no loss of income if company makes efforst to fulfill this offer. Amount ($) Direct Material          75.00 Direct Labour          55.00 Variable manufacturing overhead          36.00 Shipping cost          10.00 Total relevant cost        176.00

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