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Ultralinear Electronics Corporation Ultralinear Electronics Corporation Manufactures and Sells FM Radios.Information on the Radios.Information

Question 92

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.Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit.If sold through regular channels,the minimum acceptable price will be


A) $30.
B) $33.
C) $10.
D) $4.

Correct Answer:

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