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Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows:
Direct materials $3Direct labor 2Manufacturing overhead _4Total $2
Question 1: An order to purchase 4,000 units was recently received from a new customer. There is enough capacity to fill the order and ?lling this order would not disrupt current operations. Barnett Brass would incur an additional $1.50 per unit for shipping costs. Thirty percent of the manufacturing overhead costs are ?xed and would be incurred no matter how many units are produced. In negotiating a price, how much is the minimum acceptable selling price?
A. $10.50
B. $7 .80
C. $9.30
D. $7.70
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