QUESTION

1.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:

Directmaterials$556

Direct labor362

Variable manufacturingsupport60

Fixed manufacturingsupport126

Total manufacturingcosts1,104

Markup(50%)552

Targeted sellingprice$1,656

Kitchens Sales Inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $70 per unit. The average marketing cost of Kitchens Sales product is $173 per order.For Kitchens, what is the full cost of the one-time-only special order?

$1034

$1174

$1104

$1347