00 The Mighty Music Company produces and sells a desktop speaker for $170. The company has the capacity to produce 57,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs Product level costs Facility level costs The company has received a special order offer for 8,000 speakers. Capacity exists to fulfill this order. If this order is accepted, the company will have to spend $17,000 on additional supervisor salary costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be "indifferent" between accepting and rejecting the special order (i.e. zero profit on this order)? Zeigler Note: Do not round your intermediate calculations. Round your final answer to two decimal places. Multiple Choice $80 $22 $12 $89,63
00 The Mighty Music Company produces and sells a desktop speaker for $170. The company has the capacity to produce 57,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs Product level costs Facility level costs The company has received a special order offer for 8,000 speakers. Capacity exists to fulfill this order. If this order is accepted, the company will have to spend $17,000 on additional supervisor salary costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be "indifferent" between accepting and rejecting the special order (i.e. zero profit on this order)? Zeigler Note: Do not round your intermediate calculations. Round your final answer to two decimal places. Multiple Choice $80 $22 $12 $89,63
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:00
The Mighty Music Company produces and sells a desktop speaker for $170. The company has the capacity to
produce 57,000 speakers each period. At capacity, the costs assigned to each unit are as follows:
Unit level costs
Product level costs
Facility level costs
The company has received a special order offer for 8,000 speakers. Capacity exists to fulfill this order. If this order
is accepted, the company will have to spend $17,000 on additional supervisor salary costs. Assuming that no sales
to regular customers will be lost if the order is accepted, at what selling price will the company be "indifferent"
between accepting and rejecting the special order (i.e. zero profit on this order)?
Zeigler Note: Do not round your intermediate calculations. Round your final answer to two decimal places.
Multiple Choice
$89.63
$80
$22
$12
$92 63
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