Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Black Forrest manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $180 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 50% markup to full costs.
-A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.Black Forrest Incorporated is invited to submit a bid to the hotel chain.What is the lowest price per unit Black Forrest should bid on this long-term order?

A) $126
B) $144
C) $180
D) $270