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Q3 (10 Marks) Gabrielle's Louisiana Foods has excess capacity. Gabrielle is approached by Chew-and-Brew, a new customer, to fill a one-time order for 1000 units
Q3 (10 Marks) Gabrielle's Louisiana Foods has excess capacity. Gabrielle is approached by Chew-and-Brew, a new customer, to fill a one-time order for 1000 units of a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (60%) Targeted selling price $20.00 25.00 12.00 15.00 72.00 43.20 $115.20
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