Clay co. has considerable excess manufacturing capacity. a special job order's cost sheet includes the following applied manufacturing overhead costs: fixed costs: 21,000 variable costs: 33,000 the fixed costs include a normal $3,700 allocation for in-house design costs, although no in-house design will be done. instead, the job will require the use of external designers costing $7,750. what is the total amount to be included in the calculation to determine the minimum acceptable price for the job? select one:

a. $58,050
b. $54,000
c. $40,750
d. $36,700

minimum acceptable price = $40,750

so correct option is c. $40,750

Explanation:

given data

Fixed costs = 21,000

Variable costs = 33,000

The fixed costs normal = $3,700

external designers costing = $7,750

to find out

determine the minimum acceptable price

solution

we will get here minimum acceptable price will be express as

minimum acceptable price =  variable costs + external designers costing  1

put here value we get

minimum acceptable price = $33,000 + $7,750

minimum acceptable price = $40,750

so correct option is c. $40,750

we also know here that it is special order that won't affect regular sales

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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