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Red Rose Manufacturers Inc. is approached by a potential new customer to fulfill a one-time-only special order for a product similar to one offered to
Red Rose Manufacturers Inc. is approached by a potential new 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: $160 90 115 65 Variable costs: Direct materials Direct labor Manufacturing support Marketing costs Fixed costs Manufacturing support Marketing costs Total costs Markup (40%) Targeted selling price 135 55 620 248 $868 What is the contribution margin per unit? $190 $248 5436 5620
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