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Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one othered to domestic customers. The following
Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one othered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Vanable manufacturing support Faxed manufacturing support Total manufacturing costs Markup (50%) Targeted selling price $1,825 900 1,300 3.000 $7,025.00 3.512.50 $ 10537.50 Swean 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? a 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 Why or why not? c. e
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