Multiple Choice
Kintectics Ltd can manufacture 480,000 electrical pumps a year at a variable cost of $15 per pump and fixed costs of $500,000. Kintectics Ltd budgeted that it can sell 400,000 at $25 each. An additional order of 100,000 was received, but at a discount of 35% from the regular price. The relevant cost to Kintectics Ltd of the special order is:
A) $1,500,000
B) $1,450,000
C) $1,300,000
D) $1,700,000
Correct Answer:
Verified
Correct Answer:
Verified
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