FijiLtd is approached by Craig, a new customer, to fulfil a large one-time-only special order for cabinets similar to one offered to regular customers. The following per unit data apply for sales to regular customers:

Direct materials $150Direct labour 125Variable manufacturing support 80Fixed manufacturing support 75Total manufacturing costs 430Mark-up (60%) 258Targeted selling price $688

Fiji Ltd has excess capacity. Craig wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.

Required:a. For Fiji Ltd, what is the minimum acceptable price of this one-time-only special order? b. Other than price, what other items should Fiji Ltd consider before accepting this onetime-only special order? c. How would the analysis differ if there was limited capacity?