Ultralinear Electronics Corporation Ultralinear Electronics Corporation Manufactures and Sells FM Radios.Information on the Radios.Information
Multiple Choice
Ultralinear Electronics Corporation
Ultralinear Electronics Corporation manufactures and sells FM radios.Information on the prior year's operations (sales and production Model A1) is presented below:
| Sales price per unit | $30 |
| Costs per unit: | |
| Direct material | 7 |
| Direct labor | 4 |
| Overhead (50% variable) | 6 |
| Selling costs (40% variable) | 10 |
| Production in units | 10,000 |
| Sales in units | 9,500 |
Refer to Ultralinear Electronics Corporation.The Model B2 radio is currently in production and it renders the Model A1 radio obsolete.If the remaining 500 units of the Model A1 radio are to be sold through regular channels,what is the minimum price the company would accept for the radios?
A) $30
B) $27
C) $18
D) $4
Correct Answer:
Verified
Correct Answer:
Verified
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