Question
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 $1800.00 Direct manufacturing labor 130.00 Variable manufacturing support 210.00 Fixed manufacturing support 150.00 Total manufacturing costs 2290.00 Markup (20% of total manufacturing costs) 458.00 Estimated selling price $2748.00 For Golden Generator Supply, what is the minimum acceptable price of this one-time-only special order?
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