Barnett Brass Sells Economy Door Knobs for $15 Each An Order to Purchase 4,000 Units Was Recently Received from Product

Multiple Choice

Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: $\begin{array}{lr}\text { Direct materials } & \$ 3 \\\text { Direct labor } & 2 \\\text { Manufacturing overhead } & \$ 4 \\\text { Total } & \$ 9\end{array}$ 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 $1.50 per unit for shipping costs. Thirty 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?

A) $10.50
B) $7.80
C) $9.30
D) $7.70