Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one

image text in transcribed

Kitchens Sales Inc. is approached by Mr. Louis Cifer, 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 $552 Direct labor 370 Variable manufacturing support 60 Fixed manufacturing support 130 1112 Total manufacturing costs Markup (50%) 556 Targeted selling price $1668 Kitchens Sales Inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $68 per unit. The average marketing cost of Kitchens Sales' product is $172 per order. For Kitchens, what is the full cost of the one-time-only special order? O A. $1044 O B. $1352 OC. $1180 O D. $1112

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linguistic Auditing

Authors: Nigel Reeves, Colin Wright

1st Edition

1853593281, 978-1853593284

More Books

Students also viewed these Accounting questions