Question
Morrow 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
Morrow 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. Morrow 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 Morrow Generator Supply, what is the minimum acceptable price of this one-time-only special order?
Question 6 options:
| $1930.00 |
| $2290.00 |
| $2140.00 |
| $2748.00 |
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