Question
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a oneminustimeminusonly special order for a product similar to one offered to domestic customers.
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a oneminustimeminusonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:
Direct materials
$ 130
Direct labor
60
Manufacturing support
115
Marketing costs
55
Fixed costs:
Manufacturing support
185
Marketing costs
95
Total costs
640
Markup (50%)
320
Targeted selling price
$ 960
For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started