Question: Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials $3 Direct labor 2 Manufacturing overhead _4 Total


Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials $3 Direct labor 2 Manufacturing overhead _4 Total $2 An order to purchase 4,000 units was recently received from a new customer. There is enough capacity to fill the order and lling this order would not disrupt current operations. Barnett Brass would incur an additional $1.50 per unit for shipping costs. Thirty percent of the manufacturing overhead costs are xed and would be incurred no matter how many units are produced. In negotiating a price, how much is the minimum acceptable selling price? A. $10.50 B. $7 .80 C. $9.30 D. $7.70
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