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Golden Generator Supply Is Approached by Mr For Golden Generator Supply,what Is the Minimum Acceptable Price of a Large

Question 31

Multiple Choice

Golden Generator Supply is approached by Mr.Stephen,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Golden Generator Supply has excess capacity.The following per unit data apply for sales to regular customers:
 Direct materials $1800.00 Direct manufacturing labor 130.00 Variable manufacturing support 210.00 Fixed manufacturing support 150.00 Total manufacturing costs 2290.00 Markup (20% of total manufacturing costs)  458.00 Estimated selling price $2748.00\begin{array}{ll}\text { Direct materials } & \$ 1800.00 \\\text { Direct manufacturing labor } & 130.00 \\\text { Variable manufacturing support } & 210.00 \\\text { Fixed manufacturing support } & \underline{150.00} \\\quad \text { Total manufacturing costs } & 2290.00 \\\text { Markup (20\% of total manufacturing costs) } & \underline{458.00} \\\text { Estimated selling price } & \$ 2748.00\end{array}
For Golden Generator Supply,what is the minimum acceptable price of this one-time-only special order?


A) $1930.00
B) $2140.00
C) $2290.00
D) $2748.00

Correct Answer:

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