Farnsworth Television Makes and Sells Portable Television Sets

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: A special order has been received by Farnsworth 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