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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
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 Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (35% of total manufacturing costs) Estimated selling price $2,100.00 130.00 250.00 160.00 2,640.00 924.00 $3,564.00 If Golden Generator Supply accepts the order at $3,040, what is the amount contributed towards fixed costs and profit on a sales order of 1.000 units? O A. $560,000 O B. $810,000 OC. $400,000 OD. $1,084,000
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