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QUESTION 5 Swiss Watches Inc approaches Taiwan Watches Inc. with an inquiry about a special order. Taiwan Watches has excess capacity. The following information per
QUESTION 5 Swiss Watches Inc approaches Taiwan Watches Inc. with an inquiry about a special order. Taiwan Watches has excess capacity. The following information per unit data is given for sales to Taiwan's regular customers: Variable costs: Direct materials Direct labour Manufacturing support Marketing costs $170 70 110 50 Fixed costs: Manufacturing support Marketing costs Total costs Markup (50%) Targeted selling price 100 80 580 290 $870 For Taiwan Inc., what is the minimum acceptable price of this special order? Taiwan Inc. will incur no variable marketing costs for this special order. O $360 $300 0 $350 O $430
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