Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers:

Direct materials $1,825

Direct labor $900

Variable manufacturing support $1,300

Fixed manufacturing support $3,000

Total manufacturing costs $7,025.00

Markup (50%) 3,512.50

Targeted selling price $ 10,537.50

Swan Manufacturing has excess capacity.

Required:

What is the full cost of the product per unit if the marketing costs is $3,000?

What is the contribution margin per unit?

Which costs are relevant for making the decision regarding this one-time-only special order? Why?

For Swan Manufacturing, what is the minimum acceptable price of this one-time-only special order?

For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of $5,400 per unit? Why or why not?