Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows:...
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Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows:
Direct materials $ 3
Direct labor 2
Manufacturing overhead 6
Total $11
An order to purchase 4,000 units was recently received from a new customer. There is enough capacity to fill the order and filling this order would not disrupt current operations. Barnett Brass would incur an additional $1.70 per unit for shipping costs. seventy percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced. In negotiating a price, how much is the minimum acceptable selling price?
A
$8.20
B
$8.50
C
$9.30
D
$11.00
E
$9.40
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