Callow Company Has Considerable Excess Manufacturing Capacity $\begin{array}{lr}\text { Fixed costs } & \$ 42,000 \\\text { Variable costs } & 66,000\end{array}$

Multiple Choice

Callow Company has considerable excess manufacturing capacity. A special job order's cost sheet includes the following allocated manufacturing overhead costs: $\begin{array}{lr}\text { Fixed costs } & \$ 42,000 \\\text { Variable costs } & 66,000\end{array}$ The fixed costs include a normal $7,400 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $15,500. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

A) $73,000
B) $81,500
C) $108,000
D) $116,100