Question: Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows: Direct materials $ 3 Direct labor 2 Manufacturing overhead 6

Barnett Brass sells economy door knobs for $15 each. Unit product costs are as follows:

Direct materials $ 3

Direct labor 2

Manufacturing overhead 6

Total $11

An order to purchase 4,000 units was recently received from a new customer. There is enough capacity to fill the order and filling this order would not disrupt current operations. Barnett Brass would incur an additional $1.70 per unit for shipping costs. seventy percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced. In negotiating a price, how much is the minimum acceptable selling price?

		$8.20
		$8.50
		$9.30
		$11.00
		$9.40

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