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

Multiple Choice

Barnett Brass sells economy door knobs for $15 each.Unit product costs are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 3 \\\text { Direct labor } & 2 \\\text { Manufacturing overhead } & \underline { 4 } \\\text { Total } & \underline { \underline { \$ 9 } }\end{array}$$ 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