Special order decisions The Chrissy Company is evaluating an opportunity to sell 1,000 heavy duty life rafts to the United States Coast Guard. The unit price'on the special order is $175 which is $65 per unit lower than the normal price. Cost data associated with the production and distribution of the rafts are presented below:

Eighty percent of the variable marketing cost is commissions. Field sales personnel are paid a 3 percent sales commission. If the special order is accepted, the sales commission will apply. Because of a decline in recreational sales, Chrissy can fill the order without additional capacity.

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Direct materials Direct labor... Manufacturing overhead (30 percent variable) Marketing (60 percent variable).. Distribution (80 percent variable) Administrative (all fixed) .... Total product related costs $ 70.00 45.00 60.00 15.00 10.00 15.00 $215.00