Gorski Corporation Manufactures Parts That Are Used in the Production

Multiple Choice

Gorski Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65: $\begin{array}{lr}\text { Direct materials } & \$ 50 \\\text { Direct labor } & 19 \\\text { Variable manufacturing overhead } & 22 \\\text { Fixed manufacturing overhead } & 15 \\\text { Variable selling costs } & 11\end{array}$ The company received a special-order inquiry from an appliance manufacturer in Spain for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order, and the variable selling costs per unit will amount to only $5. Since Gorski has excess capacity, the minimum price that Gorski should charge the Spanish manufacturer is:

A) $96.
B) $99.
C) $105.
D) $108.
E) None of the other answers are correct.