Q3 (20%) Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials $140

Direct labor 100

Manufacturing support 105

Fixed costs:

Manufacturing support 175

Marketing costs 65

Total costs 585

Markup (50%) 292.5

Targeted selling price $877.5

Required:

a. What is the contribution margin per unit?

b. Crandle Manufacturers Inc. , what is the minimum acceptable price of this one-time-only special order?

c. Other than price, what other items should Crandle Manufacturers Inc. consider before accepting this one-time-only special order?

d. How would the analysis differ if there was limited capacity?