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Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.

Crandle Manufacturers Inc. is approached by a potential 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$140

Direct labor100

Manufacturing support105

Marketing costs65

Fixed costs:

Manufacturing support175

Marketing costs65

Total costs650

Markup (50%)325

Targeted selling price$975

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?

A) $400

B) $320

C) $410

D) $640

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