Question
VW shoe manufacturer is approached by Marc Nolan, a new customer, to fulfill a large one-time-only special order for Athletic shoes for his track team.
VW shoe manufacturer is approached by Marc Nolan, a new customer, to fulfill a large one-time-only special order for Athletic shoes for his track team. The shoes requested by Nolan are similar to shoes one offered to regular customers. He offers to pay $165 per unit for 30 shoes. The per unit data below applies to sales to regular customers. VW Shoes has excess capacity. Mr. Nolan wants the shoes in olive and blue, with a specific logo, so direct material costs will increase by $15 per unit. Additionally, the shoe logo for this order require the purchase of a special etching tool for a one time cost of $300. For VW Shoes, what is the minimum acceptable price of this one-time-only special order?
Units | |
1 | |
DM | $ 50.00 |
DL | 62.50 |
VMOH | 30.00 |
FMOH | 37.50 |
Total Man Cost | 180.00 |
Markup (50%) | 108.00 |
Targeted Selling Price | $ 288.00 |
Group of answer choices
$176.00
$185.00
$165.00
$167.50
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