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12. Hephaestus' Heaters is approached by Ms. Butterfly, a new customer, to fulfill a large one- time-only special order for a product similar to
12. Hephaestus' Heaters is approached by Ms. Butterfly, a new customer, to fulfill a large one- time-only special order for a product similar to one offered to regular customers. Hephaestus' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (10% of total manufacturing costs) Estimated selling price $490 120 59 221 890 89 $979 If Ms. Butterfly wanted a long-term commitment, and not a one-time-special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same? A) $890 B) $669 C) $610 D) $979
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