West Star Company Manufactures Computers

West Star Company manufactures computers. The following cost information for the manufacture of one computer has been compiled: West Star received an offer for a special order for 1,000 computers. In addition to normal costs, West Star would also incur a $10 shipping charge per computer. In negotiating a price, what is the minimum selling price West Star should accept? (Assume that other variables do not change and West Star has enough capacity to fulfill the order.)

A) $285
B) $275
C) $235
D) $250

Correct Answer:

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