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View Insert Table Chart Text Shape Media Collaborate Format Document Problem 3.- Special Order Decision Direct Materials Direct Labor Variable Manufacturing Support Fixed Manufacturing
View Insert Table Chart Text Shape Media Collaborate Format Document Problem 3.- Special Order Decision Direct Materials Direct Labor Variable Manufacturing Support Fixed Manufacturing Support Total Manufacturing Costs $105 45 30 45 225 Michael Kors, USA is approached by a new customer, tyfulfill a large one-time-only special order for a luxury handbag similar to one offered to regular customers. The company's accounting system shows following per unit cost data for this handbag The customer approached Michael Kors, USA about buying 60 of these handbags as holiday gifts for the discounted price of $285. The customer requires that the handbags be customized with specific initials which will result in additional direct materials and direct labor of $6 and $12 per handbag, respectively. REQUIRED: 1. For Michael Kap, USA, what is the minimum acceptable price of this one-time-only special order (that is the price at which they will not make a profit nor lose money on the order)? 2. What is the financial advantage (disadvantage) of accepting the special order from the customer? 3. Other than price, what other items should Michael Kap, USA, consider before accepting this one- time-only special order (include your response to this question within your Executive Summary)? 4. An Executive Summary is required for this problem. MacBook
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