Use the information below to answer the following question(s).

Northwoods manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full costs.

Northwoods is invited to bid on a

onetimeonly

special order to supply 100 rustic tables. What is the lowest price Northwoods should bid on this special order?

Question content area bottom

Part 1

A.

$9,000

B.

$10,800

C.

$13,500

D.

$7,200

E.

$6,300