Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a

onetimeonly

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	$120
Direct labor	90
Manufacturing support	155
Marketing costs	75
Fixed costs:
Manufacturing support	175
Marketing costs	65
Total costs	680
Markup (45%)	306
Targeted selling price	$986

For Red Rose Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.)

Question content area bottom

Part 1

A.

$306

B.

$440

C.

$450

D.

$680