Marigold Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Marigold’s normal costing process, variable costs of the special order would be $17,800 and fixed costs would be $28,910. Of the fixed costs, $4,900 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order. What is the minimum price Marigold should quote to Nash?

The minimum price Marigold should quote to Nash is $41,810

Explanation:

In order to calculate the minimum price Marigold should quote to Nash we would have to use the following formula:

Minimum price that will be charged = Total avoidable fixed cost + Variable costs

According to the given data we have the following:

Of the fixed costs, $4,900 would be for unavoidable overhead costs, hence, total avoidable fixed cost=$28,910-$4,900=$24,010

Therefore, Minimum price that will be charged=$24,010+$17,800

Minimum price that will be charged=$41,810

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

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