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Zolas' Heaters Is Approached by Ms For Zolas' Heaters,what Is the Minimum Acceptable Price of This

Question 146

Multiple Choice

Zolas' Heaters is approached by Ms.Leila,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Zolas' Heaters has excess capacity.The following per unit data apply for sales to regular customers:
 Direct materials $450.00 Direct manufacturing labor 160.00 Variable manufacturing support 100.00 Fixed manufacturing support 210.00 Total manufacturing costs 920.00 Markup (25% of total manufacturing costs)  230.00 Estimated selling price $1150.00\begin{array}{ll}\text { Direct materials } & \$ 450.00 \\\text { Direct manufacturing labor } & 160.00 \\\text { Variable manufacturing support } & 100.00 \\\text { Fixed manufacturing support } & \underline{210.00} \\\quad \text { Total manufacturing costs } & 920.00 \\\text { Markup (25\% of total manufacturing costs) } & \underline{230.00} \\\text { Estimated selling price } & \$ 1150.00 \\\end{array}
For Zolas' Heaters,what is the minimum acceptable price of this one-time-only special order?


A) $710.00
B) $920.00
C) $610.00
D) $1150.00

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