Farnsworth Television Makes and Sells Portable Television Sets Farnsworth Has Received a Special Order for a Sale of Regularly

Multiple Choice

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: $\begin{array}{lrr} \text { Direct materials } &£75\\ \text { Direct labour } &£55\\ \text {Manufacturing overhead ( \( 75 \% \) variable and \( 25 \% \) unavoidable fixed) } &£48\\\end{array}$


Farnsworth has received a special order 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