Brayton Inc. is a manufacturer of generators. Recently, the company was approached by a new customer with a request for a one-time-only special. The customer would like to buy 3,000 units of Brayton's generators. Although Brayton can produce 15,000 generators, actual production is 12,000.

The following is per unit data for sales to regular customers:

Direct materials: $1,275

Direct labour: $75

Variable overhead: $150

Fixed overhead: $120

Total Manufacturing Costs: $1,620

Markup (15%): $243

Estimated selling price: $1,863

Required:

(A) What is the minimum acceptable price of this one-time-only special order?

(B) Before accepting the one-time-only special order, what non-financial factors should Brayton consider?

(C) Now, assume that Brayton Inc. is operating at maximum capacity (i.e., producing 15,000 units) when management is asked to fulfil the special order. What would be the minimum acceptable price of this special order?

(D) If the customer wanted to form a long-term commitment for purchasing generators, what price should Brayton quote to the customer?