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Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large oneminustimeminusonly special order for a product similar to one offered

Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large

oneminustimeminusonly

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

$ 230$230

Direct manufacturing labor

130130

Variable manufacturing support

280280

Fixed manufacturing support

120120

Total manufacturing costs

760760

Markup

(1010%

of total manufacturing costs)

7676

Estimated selling price

$ 836$836

If Mr. Stephen wanted a

longminusterm

commitment, and not a

oneminustimeminusonly

special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same

A.

$ 640$640

B.

$ 836$836

C.

$ 760$760

D.

$ 360$360

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