Chloe's Creations manufactures artistic hand crafted necklaces. The normal selling price for a necklace is $$218$ and her product

cost is as follows:

Direct materials $67$

Direct labour $78$

Manufacturing overhead $12$

Unit product cost $157$

Most of the manufacturing overhead is fixed and is unaffected by sales volume, however, $$6$ of overhead is variable, depending on

the number of necklaces manufactured.

Chloe has received a request for a special order of $20$ necklaces from a new customer. The customer would like special beading costing an extra $$20$

and she would also need to purchase a special crafting tool costing $$320,$ which would not be used for other sales. This order would not impact her regular sales.

Required:

At least what price should she charge the new customer? Show all required calculations, presented neatly.

Incremental costs: Total

Now New $20$

Direct materials

Direct labour

Manufacturing overhead

Unit product cost

Total incremental cost

per unit cost

Chloe's Creations manufactures artistic hand crafted necklaces. The normal selling price for a necklace is $$218$ and her product

Most of the manufacturing overhead is fixed and is unaffected by sales volume, however, $$6$ of overhead is variable, depending on

the number of necklaces manufactured.

Chloe has received a request for a special order of $20$ necklaces from a new customer. The customer would like special beading costing an extra $$20$

and she would also need to purchase a special crafting tool costing $$320,$ which would not be used for other sales. This order would not impact her regular sales.

Required:

At least what price should she charge the new customer? Show all required calculations, presented neatly.