2) Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time- only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials $66 Direct labour 30 Variable manufacturing support 48 Fixed manufacturing support 104 Total manufacturing costs 248 Markup (50%) 124 Targeted selling price $372 Parker and Spitzer Manufacturing has excess capacity.

Required: a. What is the full cost of the product per unit? b. What is the contribution margin per unit? c. Which costs are relevant for making the decision regarding this one-time-only special order? Why? d. For Parker and Spitzer Manufacturing, what is the minimum acceptable price of this one-time-only special order? e. For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of 200 per unit? Why or why not?