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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
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   $1,700.00
   Direct manufacturing labor   100.00
   Variable manufacturing support   200.00
   Fixed manufacturing support   150.00
   Total manufacturing costs   2,150.00
   Markup (30% of total manufacturing costs)   645.00
   Estimated selling price   $2,795.00

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 same?
A) $2,000
B) $2,150
C) $2,795
D) $2,800
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
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#3
9 years ago
Grinning Face
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#4
4 years ago
tHANKS
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