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PROBLEM TWO Silver Lake Cabinets is approached by Ms. Jenny Zhang, a new customer, to fulfill a large one-time-only special order for a product similar
PROBLEM TWO Silver Lake Cabinets is approached by Ms. Jenny Zhang, 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 $125 Direct Labor 100 Variable Manufacturing Support Fixed Manufacturing Support Total Manufacturing Costs Markup (60%) 75 75 375 225 Targeted Selling Price $600 Ms. Zhang wants the cabinets in cherry rather than oak, so direct material costs will increase by S50 per unit REQUIRED 1. For Silver Lake Cabinets, what is the minimum acceptable price of this one-time-only special order? 2. Other than price, what other items should Silver Lake Cabinets consider before accepting this one time-only special order? 3. An Executive Summary is required for this
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