Toledo Manufacturing is contacted by a prospective customer who wants a one-time-only special order for a product similar to one that Toledo offeres to its regular customers. The following per unit data apply for sales to regular customers: Direct materials $2,545 Direct labor 1,100 Variable manufacturing support 1,400 Fixed manufacturing support 3,200 Total manufacturing costs $8,245 Markup (40%) 3,298 Targeted selling price $ 11,543 Toledo Manufacturing has excess capacity.

Required:

a. Identify which costs are relevant to Toledo for making a decision about this one-time-only special order.

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