Answer the Following Questions Using the Information Below:
Golden Generator

question 115

Multiple Choice

Answer the following questions using the information below:
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:
$$\begin{array} { l r } \text { Direct materials } & \$ 1,700.00 \\\text { Direct manufacturing labor } & 100.00 \\\text { Variable manufacturing support } & 200.00 \\\text { Fixed manufacturing support } & \underline { 150.00 } \\\quad \text { Total manufacturing costs } & 2,150.00 \\\text { Markup (30\% of total manufacturing costs) } & 645.00 \\\text { Estimated selling price } & \$ 2,795.00 \\\hline\end{array}$$
-For Golden Generator Supply,what is the minimum acceptable price of this one-time-only special order?

• A) $1,800
• B) $2,000
• C) $2,150
• D) $2,580

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