Answer the Following Questions Using the Information Below

Answer the following questions using the information below:
Gold Coast Freshair (GCF) manufactures single room-sized air conditioners.The cost accounting system estimates manufacturing costs to be $120 per air conditioner,consisting of 75% variable costs and 25% fixed costs.The company has surplus capacity available.It is GCF's policy to add a 40% mark-up to full costs.
-GCF is invited to bid on a one-time-only special order to supply 50 air conditioners.What is the lowest price GCF should bid on this special order?

A) $4750
B) $4500
C) $6175
D) $6250

Correct Answer:

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