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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
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
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