Purple Trees Manufactures Rustic Furniture

Purple Trees manufactures rustic furniture.The cost accounting system estimates manufacturing costs to be $240 per table,consisting of 60% variable costs and 40% fixed costs.The company has surplus capacity available.It is Purple Trees' policy to add a 75% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.Purple Trees is invited to submit a bid to the hotel chain.What per unit price will Purple Trees most likely bid on this long-term order?

A) $168 per unit
B) $180 per unit
C) $252 per unit
D) $420 per unit