Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials $ 3 Direct labor 2 Manufacturing overhead 6 Total $11 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 $1.70 per unit for shipping costs. seventy 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? $8.20 $8.50 $9.30 $11.00 $9.40
Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows:
Direct materials $ 3
Direct labor 2
Manufacturing
Total $11
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 $1.70 per unit for shipping costs. seventy percent of the
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$8.20 |
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$8.50 |
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$9.30 |
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$11.00 |
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$9.40 |
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