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Swiss Watches Inc approaches Taiwan Watches Inc. with an inquiry about a special order. Taiwan Watches has excess capacity. The following information per unit
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 $170 70 Manufacturing support 110 Marketing costs 50 Fixed costs: Manufacturing support 100 Marketing costs 80 Total costs 580 Markup (50%) Targeted selling price 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.
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