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Grant's Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one time only special order for a product similar to

Grant's Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one time only special order for a product similar to one offered to regular customers.

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

Direct materials $455

Direct labour 300

Variable manufacturing support 45

Fixed manufacturing support 100

Total manufacturing costs $900

Markup (60%) 540

Targeted selling price $1,440

Grant's Kitchens has excess capacity. Ms. Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.

For Grant's Kitchens, what is the minimum acceptable price of this onetimeonly special order?

A. $830 B. $930 C. $900 D. $800 E. $1,440

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