Dantley's Furniture manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $190 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 45% markup to full costs. Dantley's Furniture is invited to bid on a one-time-only special order to supply 180 rustic tables. What is the lowest price Dantley's Furniture should bid on this special order?
A) $22,230
B) $27,360
C) $34,200
D) $42,750

Question

Quizplus · Accepted Answer

$190 × 80% × 180 tables = $27,360

Dantley's Furniture Manufactures Rustic Furniture