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 $240 per table, consisting of 60% variable costs and 40% fixed costs. The company has surplus capacity available. It is Black Forrest policy to add a 50% markup to full costs.
-Black Forrest is invited to bid on a one-time-only special order to supply 200 rustic tables. What is the lowest price Black Forrest should bid on this special order?

A) $43,200
B) $14,400
C) $24,000
D) $28,800