Answer:
Some level of actual competition still occurs in the perfectly competitive markets.
Explanation:
There is a perfect competition when have many sellers, it is easy for firms to enter and leave, products of the sellers are homogeneous, and sellers are price takers.
Perfect competition is a concept that exists only in theory and does not exist in reality. As a result, real-life examples of perfect competition are hard to come by, but there are a few that demonstrate the intensity of actual competition that exists in completely competitive markets.
Consider the instance of two competing supermarkets that both stock their aisles with goods from the same set of companies. Between the two supermarkets, there is little to separate products from one another, and their pricing is nearly identical.
The market for unbranded products, which contains cheaper replicas of well-known brands, is another example of ideal competition.
Product knockoffs are often priced in the same way and it may be difficult to differentiate them. If one of the companies that makes or supplies such a product leaves the industry, another one takes its place.
Despite that perfect competition is a concept that exists only in theory, the above examples therefore show that some level of actual competition still occurs in the perfectly competitive markets.
Your company just sold a product with the following payment plan: $40,000 today, $35,000 next year, and $30,000 the following year. If your firm places the payments into an account earning 6% per year, how much money will be in the account after collecting the last payment?
Answer:
the money that will be in the account after collecting the last payment is $112,044
Explanation:
The computation of the money that will be in the account after collecting the last payment is shown below:
Amount is
= $40,000 × (1.06)^2 + $35,000 × (1.06) + $30,000
= $112,044
Hence, the money that will be in the account after collecting the last payment is $112,044
Caterpillar Inc. (CAT) pays an annual dividend of $4.45. The company is expected to continue paying this dividend with no future growth in dividends. Investors require 11% rate of return on this investment. What is the current stock value of CAT
Answer:
$40.45
Explanation:
The current stock value of CAT is computed as below
Current stock value = Annual dividend / Rate of return
Current stock value = $4.45 / 11%
Current stock value = $4.45 / 0.11
Current stock value = $40.454546
Current stock value = $40.45
So, the current stock value of CAT is $40.45.
Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions). a. Purchased buildings costing $450 and equipment costing $234 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $54,171 in service to customers during the year, with $23,358 on account and the rest received in cash.
d. Paid $129,574 cash on accounts payable.
e. Purchased $41,983 of inventory on account.
f. Paid payroll, $5,240 during the year.
g. Received $19,043 on account paid by customers.
h. Purchased and used fuel of $1,600 in delivery vehicles during the year (paid for in cash).
i. Declared $598 in dividends at the end of the year to be paid the following year.
j. Incurred $126 in utility usage during the year; paid $93 in cash and owed the rest on account.
Required:
For each of the transactions, prepare journal entries.
Answer:
Sysco Corporation
Journal Entries:
a. Debit Buildings $450
Debit Equipment $234
Credit Cash $684
To record the purchase of long-term assets for cash.
b. Debit Cash $119
Credit Short-term Note Payable $119
To record the funds borrowed from a bank.
c. Debit Accounts receivable $23,358
Debit Cash $30,813
Credit Service Revenue $54,171
To record the provision of service to customers on account and for cash.
d. Debit Accounts Payable $129,574
Credit Cash $129,574
To record the payment on account.
e. Debit Inventory $41,983
Credit Accounts Payable $41,983
To record the purchase of merchandise on account.
f. Debit Salaries Expense $5,240
Credit Cash $5,240
To record the payment of payroll during the year.
g. Debit Cash $19,043
Credit Accounts receivable $19,043
To record the cash received from customers on account.
h. Debit Delivery Vehicles Expense $1,600
Credit Cash $1,600
To record the purchase of fuel for the delivery vehicles.
i. Debit Dividend $598
Credit Dividends Payable $598
To record the declaration of dividend.
j. Debit Utilities Expense $126
Credit Cash $93
Credit Utilities Payable $33
To record the Utilities expenses incurred during the year.
Explanation:
Transactions Analysis:
a. Buildings $450 Equipment $234 Cash $684
b. Cash $119 Short-term Note Payable $119
c. Accounts receivable $23,358 Cash $30,813 Service Revenue $54,171
d. Accounts Payable $129,574 Cash $129,574
e. Inventory $41,983 Accounts Payable $41,983
f. Salaries Expense $5,240 Cash $5,240
g. Cash $19,043 Accounts receivable $19,043
h. Delivery Vehicles Expense $1,600 Cash $1,600
i. Dividend $598 Dividends Payable $598
j. Utilities Expense $126 Cash $93 Utilities Payable $33
Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 18%, what is the modified internal rate of return
Answer:
The modified internal rate of return is 15.67%.
Explanation:
Note: See the attached excel file for the calculation of the total present value of the after-tax cash flows.
From the attached excel file, we have:
Total present value of the after-tax cash flows = $40,332.66
The modified internal rate of return (MIRR) can be calculated using the following formula:
MIRR = (PV / Outlay)^(1/n) * (1 + r) - 1……………….. (2)
Where;
PV = Total present value of the after-tax cash flows = $40,332.66
Outlay = Absolute value of cost of the project = $47,300
r = cost of capital = 18%, or 0.18
n = number of years = 8
Substitute the values into equation (1) to have:
MIRR = ($40,332.66 / 47,300)^(1/8) * (1 + 0.18) - 1 = 0.1567, or 15.67%
Therefore, the modified internal rate of return is 15.67%.
whistle works manufacturers safety whistle keychains. They have the following information available to prepare their master budget whistle works sells eafch whistle for $12. It takes .25 direct labor hours to produce each whistle at a cost of $15 per hour. How much will direct labor cost be in December
Answer:
See below
Explanation:
The above information is incomplete. However, similar question will be used.
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?
a. Both the adjuster and the student we potential customers because in their own way, they both benefit from the product.
b. The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use.
c. Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers.
d. Only a person who has bought a smartphone previously is a prospective customer, only previous owners of smartphones benefit from buying new ones.
e. The adjuster is a prospective customer because the smartphone will be used for work, the student is only a secondary user since the purpose of the smartphone is just for entertainment
Answer:
Option A (Both the adjuster and the student we potential customers because in their own way, they both benefit from the product).
Explanation:
Both the adjuster and the student were potential customers as they were both buying the smartphone for either personal or official use. The adjuster sees the smartphone as a product or tool that could be used to make work efficient. The student sees the product as a luxury. Either way, they are buying the smartphone and as such, they are very important to the producers of the smartphone because the product is useful to both of them.
What is the difference between economics and geography? -,-
Answer:
Economics is a Bhadda subject aur geo Ki to pucho he mat ok bye
Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.
a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost
Answer:
c
Explanation:
Marginal revenue is the change revenue when quantity sold increases by one unit
Marginal revenue = change in total revenue /change in quantity sold
Mimi's marginal revenue = $10 - $8 = $2
India now has pockets of strengths in key high-technology industries such as software and pharmaceuticals. Why do you think India is developing strength in these areas?
Answer:
cuz they smart
Explanation:
Is an increase in the marginal income tax rate reflected by a shift in the after-tax supply of labor or a movement along the supply curve when the pretax wage rate is on the vertical axis?
Answer:
A shift in the supply curve of labour.
Explanation:
An increase in marginal income tax rate cause the income tax burden on a consumer to rise as the consumers income goes up.
What this means is that as his income gets to rise, he would have to pay more in taxes. Due to a rising change in what he pays as tax, what he would receive as income after tax would be lower at the same number of labor hours. On the labor supply curve this would depict a downward shift.
In conclusion, an increase in marginal tax would be shown by a shift in the after tax supply of labor which would fall backwards or downwards
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
Required:
Compute the total, price, and quantity variances for (1) materials and (2) labor.
Answer:
Results are below.
Explanation:
To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (4.4 - 4.15)*90,500
Direct material price variance= $22,625 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8*11,250 - 90,500)*4.4
Direct material quantity variance= $2,200 unfavorable
Total direct material variance= 22,625 - 2,200= $20,425 favorable
To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4
Direct labor time (efficiency) variance= $10,050 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (13.4 - 14.1)*14,250
Direct labor rate variance= $9,975 unfavorable
Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is $2800 unfavorable. $800 favorable. $800 unfavorable. $500 unfavorable.
Answer:
$800 favorable
Explanation:
Calculation to determine what the total direct labor variance is
Using this formula
Total Direct Labor Variance=(Standard Direct Labor Cost - Actual Direct Labor Cost
Let plug in the formula
Total Direct Labor Variance=[(2800 × 2) × $15]- $83200
Total Direct Labor Variance=$84000 - $83200
Total Direct Labor Variance = $800 favorable
Therefore the total direct labor variance is$800 favorable
In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $10 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 89 units to 77 units. The deadweight :_______
Answer:
$105
Explanation:
Missing word "The deadweight loss of this tax is...?"
Change in price = $10
Original quantity = 89 units
New quantity = 77 unit
Change in quantity= 89 units-77 units = 12 units
Dead-weight loss = 1/2 * Change in price * Change in quantity
Dead-weight loss = 1/2 * $10 * $21
Dead-weight loss = $105
Therefore, the dead-weight loss of this tax is $105.
A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its
Answer:
Pricing strategy to stay competitive
Explanation:
Pricing strategy is the process by which a company sets prices of goods and services offered to a consumer.
In setting up a price strategy the management.of a business need to put into consideration the competitive reaction, pricing position, pricing segment, and pricing capability.
The generic drugs companies in the US are selling fluconazole for a higher price than pharmaceutical company with headquarters in India in the international market.
In order for them to stay competitive they will need to review their price downward or customers will switch to the cheaper option
On January 1, 2024, an investor paid $261,000 for bonds with a face amount of $315,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2025 (assume annual interest payments and amortization)
Answer:
$26,100
Explanation:
Calculation to determine how much interest income is recognized by the investor in 2025
Using this formula
Interest income = Amount paid* market rate of interest
Let plug in the formula
Interest income= $261,000*10%
Interest income= $26,100
Therefore the interest income that is recognized by the investor in 2025 will be $26,100
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 40 parts. A part requires 6 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 5 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time fill in the blank 1 min fill in the blank 2 min Non-value-added time fill in the blank 3 min fill in the blank 4 min Total lead time fill in the blank 5 min fill in the blank 6 min Value-added ratio (as a percent) fill in the blank 7 % fill in the blank 8 %
Answer: See explanation
Explanation:
Traditional philosophy:
Value added time = 6 + 8 = 14
Non-value-added time = 14 × (40-1) + 5 = 551
Total lead time = 14 + 551 = 565
Value-added ratio (as a percent) = 14/565 × 100 = 2.48%
Lean Manufacturing Philosophy:
Value added time = 14
Non-value-added time = 14 × (5-1) = 56
Total lead time = 14 + 56 = 70
Value-added ratio (as a percent) = 14/70 × 100 = 20%
Which of the following statements is more likely if cash and marketable securities increase by $5,000 during a period in which cash provided by operations increases by $1,000 and cash used by investments decreases by $500?
A) Cash provided by financing increases by S6,500.
B) Cash used by financing decreases by $1,000.
C) Debt increases by more than cash dividends paid.
D) Debt is reduced by more than cash dividends paid.
Answer:
C) Debt increases by more than cash dividends paid
Explanation:
Based on the information given the statements that is more likely based on the below calculation will be : DEBT INCREASES BY MORE THAN CASH DIVIDENDS PAID reason been that the NET INCREASE IN THE CASH from financing activities was the amount of $4,500
Net Increase In The Cash from financing activities = $5000 - $1000 + $500
Net Increase In The Cash from financing activities= $4500
Gullett Corporation had $34,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $83,000 of raw materials. The journal entry to record the purchase of raw materials would include a:
Answer:
A decrease in price
Explanation:
What does project failure mean? What are some examples?
Answer:
that's mean A project is considered a failure when it has not delivered what was required, in line with expectations
Explanation:
Therefore, in order to succeed, a project must deliver to cost, to quality, and on time; and it must deliver the benefits presented in the business case.
Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.
Answer:
12.60 %
Explanation:
Using the CF function of a financial calculator the internal rate of return will be calculated as follows :
- $177,000 CF 0
$21,000 CF 1
5 shift Nj
$29,000 CF 2
5 shift Nj
$42,000 CF 3
5 shift Nj
Then
Shift IRR = 12.60 %
therefore,
the internal rate of return for a project is 12.60 %
Your uncle has just purchased a wheat farm and wants your advice on how he should price his product. Explain to your uncle the characteristics of the market structure under which his farm falls and how this will help him to determine the price and quantity of the wheat he will produce.
Answer:
the wheat firm is perfectly competitive
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
he is a price taker and the price of his wheat which would be equal to equilibrium price would be determined by market forces
if he sells at the market price, he would sell all his wheat
Explanation:
If the uncle sells above equilibrium price, he would not sell any wheat
he cannot sell below equilibrium price because he would make losses
cutter enterprises purchased equipment for $75,000 on january 1, 2021. the equipment is expected to have a five-year life and a residual value of $4,200. using the double-declining-balance method, depreciation for 2021 and the book value at december 31, 2021, would be: book
Answer:
Double Declining Depreciation rate = 1/5*2
Double Declining Depreciation rate = 40%
Double Declining Depreciation for 2021 = $75,000*40%
Double Declining Depreciation for 2021 = $30,000
Book value at December 31, 2021 = $75,000 - $30,000
Book value at December 31, 2021 = $45,000
BE12-1 Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500. Prepare the entry to record Nichols's investment in the partner- ship, assuming the equipment has a fair value of $4,000.
Answer:
Dr Cash $10,000
Dr Equipment (at FairValue) $4,000
Cr Nichols’s Capital Account $14,000
Explanation:
Preparation of the entry to record Nichols's investment in the partner- ship
Dr Cash $10,000
Dr Equipment (at FairValue) $4,000
Cr Nichols’s Capital Account $14,000
($10,000+$4,000)
(To record Nichols's investment in the partner- ship)
You can display good customer service by
Answer:
Showing good manner, asking if they need anything, and etc...
Explanation:
Answer:
having a professional appearance while attending to costumers.
hope this helps
have a good day:)
Explanation:
In the month of June, a department had 19900 units in beginning work in process that were 75% complete. During June, 90200 units were transferred into production from another department. At the end of June there were 11000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were
Answer:
103,500 units
Explanation:
Equivalent units calculation - conversion costs
Completed and transferred units (99,100 x 100 %) = 99,100 units
Ending Work in Process units (11000 x 40%) = 4,400 units
Total Equivalent units = 103,500 units
therefore,
The equivalent units of production for conversion costs for June were 103,500 units
Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $228,000 and would yield the following annual cash flows.
C1 C2 C3
Year 1 $12,000 $96,000 $180,000
Year 2 108,000 96,000 60,000
Year 3 168,000 96,000 48,000
Totals $288,000 $288,000 $288,000
Assume that the company requires a 12% return from its investments. Using net present value, determine which projects, if any, should be acquired.
Required:
Compute the internal rate of return for project C2.
Answer:
c3 should be acquired
8.52%
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
NPV and IRR can be calculated with a financial calculator
C1
Cash flow in year 0 = $-228,000
Cash flow in year 1 = $12,000
Cash flow in year 2 = $96,000
Cash flow in year 3 = $180,000
I = 12%
NPV = -12,634.66
C2
Cash flow in year 0 = $-228,000
Cash flow in year 1 = 108,000
Cash flow in year 2 = $96,000
Cash flow in year 3 = 60,000
I = 12%
NPV = -12,334
IRR = 8.52%
C3
Cash flow in year 0 = $-228,000
Cash flow in year 1 = 168,000
Cash flow in year 2 = $96,000
Cash flow in year 3 = 48,000
I = 12%
NPV = 32,696.06
It is only c3 that has a positive NPV. Thus, it is the only profitable project. Only C3 should be accepted
To determine the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To determine the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
c2 = 12,334
c3 = 32,696.06
Granger Printing currently uses a manufacturing facility costing $560,000 per year; 90% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what amount of cost would be allocated to the start-up business
Answer:
the amount of cost that allocated is $61,600
Explanation:
The computation of the amount of cost that allocated is shown below;
= The costing of the manufacturing facility × increase percentage of the overall cost for maintaining the space
= $560,000 × 11%
= $61,600
hence, the amount of cost that allocated is $61,600
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs 55 Fixed costs: Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (50%) 320 Targeted selling price $960 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order
Answer:
$400
Explanation:
Calculation to determine the minimum acceptable price of this special order
Using this formula
Minimum acceptable price=Direct materials+ Direct labor+ Manufacturing support +Marketing costs
Let plug in the formula
Minimum acceptable price=$140 + $100 + $105 + $55
Minimum acceptable price=$400
Therefore the minimum acceptable price of this special order is $400