IIA
IIA-CIA-PART3 · Question #185
A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for §10, Variable Manufacturing costs are 55 per unit and fixed…
The correct answer is C. Costs related to accepting this offer can be absorbed through the sale of other products. You've hit your session limit · resets 10:20pm (America/New_York)
Question
A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for §10, Variable Manufacturing costs are 55 per unit and fixed manufacturing costs are $3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?
Options
- AFixed and Variable manufacturing costs are less than the special offer selling price.
- BThe manufacturer can fulfill the order without expanding the capacities of the production facilities.
- CCosts related to accepting this offer can be absorbed through the sale of other products.
- DThe manufacturer's production facilities are currently operating at full capacity.
How the community answered
(47 responses)- A4% (2)
- B11% (5)
- C83% (39)
- D2% (1)
Explanation
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