KatyCo. is approached by a new customer to fulfill a large one-time-only special order for a product similar to one offered to domestic customers.KatyCo. has excess capacity. The following per unit data apply for sales to regular customers:

Directmaterials$140

Directlabor$70

Variable manufacturingsupport$80

Fixed manufacturingsupport$60

Total manufacturingcosts$350

Markup30%$105

Targeted sellingprice$455

Required:

1. What is the full cost of the product per unit if the marketing costs are $40? (10 pts)
2. What is the contribution margin per unit? (5 pts)
3. ForKatyCo., what is the minimum acceptable price of this one-time-only special order? (5 pts)
4. For this one-time-only special order, shouldKatyCo. consider a price of $300 per unit? Why or why not? Explain. (5 pts)

Answer rating: 100% (QA)

To answer your questions lets calculate the relevant values step by step 1 Full Cost of the Product per Unit The full cost of the product per unit inc... View the full answer