Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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 $190
Direct manufacturing labor 180
Variable manufacturing support 280
Fixed manufacturing support 140
Total manufacturing costs 790
Markup (10% of total manufacturing costs) 79
Estimated selling price $869
If Mr. Stephen wanted a long-term commitment, and not a one-time-only special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same?
A.
$650
B.
$790
C.
$869
D.
$370
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
