Barnett Brass sells economy door knobs for $15 each.Unit product costs are as follows: $$\begin{array} { l r }
\text { Direct materials } & \$ 3 \
\text { Direct labor } & 2 \
\text { Manufacturing overhead } & \underline { 4 } \
\text { Total } & \underline { \underline { \$ 9 } }
\end{array}$$ An order to purchase 4,000 units was recently received from a new customer.There is enough capacity to fill the order and filling this order would not disrupt current operations.Barnett Brass would incur an additional $1.50 per unit for shipping costs.Thirty percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced.In negotiating a price, how much is the minimum acceptable selling price?

Question

Barnett Brass sells economy door knobs for $15 each.Unit product costs are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 3 \
\text { Direct labor } & 2 \
\text { Manufacturing overhead } & \underline { 4 } \
\text { Total } & \underline { \underline { \$ 9 } }
\end{array}$$ An order to purchase 4,000 units was recently received from a new customer.There is enough capacity to fill the order and filling this order would not disrupt current operations.Barnett Brass would incur an additional $1.50 per unit for shipping costs.Thirty percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced.In negotiating a price, how much is the minimum acceptable selling price?

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The Answer of Barnett Brass sells economy door knobs for $15 each.Unit product costs are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 3 \
\text { Direct labor } & 2 \
\text { Manufacturing overhead } & \underline { 4 } \
\text { Total } & \underline { \underline { \$ 9 } }
\end{array}$$ An order to purchase 4,000 units was recently received from a new customer.There is enough capacity to fill the order and filling this order would not disrupt current operations.Barnett Brass would incur an additional $1.50 per unit for shipping costs.Thirty percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced.In negotiating a price, how much is the minimum acceptable selling price?

Barnett Brass Sells Economy Door Knobs for $15 Each An Order to Purchase 4,000 Units Was Recently Received from Costs