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Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials Direct labor Manufacturing overhead Total $ 3
Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials Direct labor Manufacturing overhead Total $ 3 2 6 $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? $8.20 O O O O O $8.50 $9.30 $11.00 $9.40
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