Solved

Golden Generator Supply Is Approached by Mr If Golden Generator Supply Accepts the Order at $2640,what Is

Question 36

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 $1900.00 Direct manufacturing labor 120.00 Variable manufacturing support 210.00 Fixed manufacturing support 170.00 Total manufacturing costs 2400.00 Markup (25% of total manufacturing costs)  600.00 Estimated selling price $3000.00\begin{array} { l l } \text { Direct materials } & \$ 1900.00 \\\text { Direct manufacturing labor } & 120.00 \\\text { Variable manufacturing support } & 210.00 \\\text { Fixed manufacturing support } & \underline { 170.00 } \\\quad \text { Total manufacturing costs } & 2400.00 \\\text { Markup (25\% of total manufacturing costs) } & \underline { 600.00 } \\\text { Estimated selling price } & \$ 3000.00\end{array}
If Golden Generator Supply accepts the order at $2640,what is the amount contributed towards fixed costs and profit on a sales order of 1600 units?


A) $384,000
B) $656,000
C) $1,232,000
D) $992,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents