Quick Connect Manufactures High-Tech Cell Phones For Long-Run Pricing of the Cell Phones,what Price Will Most

Quick Connect manufactures high-tech cell phones.Quick Connect has a policy of adding a 20% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month: $$\begin{array} { l r } \text { Output units } & 1,250 \text { phones } \\\text { Machine-hours } & 750 \text { hours } \\\text { Direct manufacturing labor-hours } & 700 \text { hours } \\& \\\text { Direct materials per unit } & \$ 20 \\\text { Direct manufacturing labor per hour } & \$ 8 \\\text { Variable manufacturing overhead costs } & \$ 175,000.00 \\\text { Fixed manufacturing overhead costs } & \$ 126,300 \\\text { Product and process design costs } & \$ 143,000 \\\text { Marketing and distribution costs } & \$ 153,645\end{array}$$ For long-run pricing of the cell phones,what price will most likely be used by Quick Connect?

A) $95.00
B) $135.00
C) $175.00
D) $210.00

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free