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Answer the following questions using the information below: Coroid Manufacturers Inc. is approached by a European customer to fulfill a one - time -
Answer the following questions using the information below: Coroid Manufacturers Inc. 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 company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 60 Manufacturing support 105 Marketing costs 45 Fixed costs: Direct materiais Direct labor Manufacturing support 60 2855 $120 105 45 Marketing costs Fixed costs: Manufacturing support 135 Marketing costs 45 Total costs 510 Markup (50%) 255 $765 Targeted selling price For Coroid Manufacturers Inc., what is the minimum acceptable price of this special order? A. $330 B. $290 C. $510 D. $340
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