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4) Polar 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.
4) Polar 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. Polar Manufacturing has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $80 Direct labor 40 Manufacturing support 70 Marketing costs 30 Fixed costs: Manufacturing support 90 Marketing costs 30 Total costs 340 Markup (50%) 170 Targeted selling price $510 For Polar Manufacturing, what is the minimum acceptable price of this special order? A) $220 B) $290 C) $340 D $510
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