Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large

onetimeonly

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	$546
Direct labor	360
Variable manufacturing support	56
Fixed manufacturing support	128
Total manufacturing costs	1,090
Markup (50%)	545
Targeted selling price	$1,635

Kitchens Sales Inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $63 per unit. The average marketing cost of Kitchens Sales' product is $171 per order. Other than price, what other items should Kitchens Sales consider before accepting this

onetimeonly

special order?

Question content area bottom

Part 1

A.

price is the only consideration

B.

reaction of existing customers to the lower price offered to Mr. Louis Cifer

C.

reaction of shareholders

D.

demand for cherry cabinets