Taylor Electronics, Inc. (TEI), has been approached by a new customer who wants to place a one-time order for a companyt similar to one that TEI makes for another customer. Existing sales will not be affected by acceptance of this order. TEI has a policy of setting its targeted selling price at 60 percent over full manufacturing cost. The manufacturing costs and the targeted selling price for the component currently being made are as follows: direct materials 2.30 direct labor 3.60 variable manufacturing overhead 2.70 (75% of direct labor cost) fixed manufacturing overhead 5.40 (150% of direct labor cost) total manufacturing cost 14.00 markup (60% of full manufacturing cost) 8.40 targeted selling price 22.40 TEI has excess capacity to produce the quantity of the component desired by the new customer. The direct materials used on the component for the new customer would cost the manufacturer $0.25 less than those in the component currently being made. The variable selling expenses (packaging and shipping) would be the same as for the component currently being made, or $ 0.90 per unit. Required: What is the minimum unit price at which TEI would be willing to accept the special order? * 3 days ago * - 20 hours left to answer. Additional Details direct materials 2.30 direct labor 3.60 variable manufacturing overhead 2.70 variable selling expenses 0.90 9.50 special order lesser direct material cost (0.25) variable cost 9.25 i arrived ad 9.25 as variable cost per component but i am not sure where exactly to add the mark up. the problem says, 'TEI has a policy of setting its targeted selling price at 60 percent over full manufacturing cost'. does the total manufacturing cost includes the fixed cost then? how about the variable selling expenses? PLS HELP