Solved

Answer the Following Questions Using the Information Below:
Golden Generator

Question 115

Multiple Choice

Answer the following questions using the information below:
Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:
 Direct materials $1,700.00 Direct manufacturing labor 100.00 Variable manufacturing support 200.00 Fixed manufacturing support 150.00 Total manufacturing costs 2,150.00 Markup (30% of total manufacturing costs)  645.00 Estimated selling price $2,795.00\begin{array} { l r } \text { Direct materials } & \$ 1,700.00 \\\text { Direct manufacturing labor } & 100.00 \\\text { Variable manufacturing support } & 200.00 \\\text { Fixed manufacturing support } & \underline { 150.00 } \\\quad \text { Total manufacturing costs } & 2,150.00 \\\text { Markup (30\% of total manufacturing costs) } & 645.00 \\\text { Estimated selling price } & \$ 2,795.00 \\\hline\end{array}
-For Golden Generator Supply,what is the minimum acceptable price of this one-time-only special order?


A) $1,800
B) $2,000
C) $2,150
D) $2,580

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions