Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:

Direct materials	$850
Direct manufacturing labour	75
Variable manufacturing support	150
Fixed manufacturing support	75
Total manufacturing costs	1,150
Markup (20%)	230
Estimated selling price	$1,380

If Mr. Gladstone wanted a long-term commitment for supplying this product, what price would most likely be quoted to him?

Question 6Select one:

a.

$1,380

b.

$1,200

c.

$1,400

d.

$1,075

e.

$1,000