Crandle Manufacturers Inc. is approached by a potential new 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

$170

Direct labor

90

Manufacturing support

135

Marketing costs

85

Fixed costs:

Manufacturing support

145

Marketing costs

75

Total costs

700

Markup (40%)

280

Targeted selling price

$980

What is the contribution margin per unit?

		$500
		$280
		$220
		$700