Yes man Manufacturing is approached by Mr. Al kaung, a new customer, to fulfill a large one-time-only special order for a cabinet similar to one offered to regular customers. The following per unit data apply for sales to regular customers:

Direct material cost $546

Direct labor cost 360

Variable manufacturing overhead cost 54

Fixed manufacturing overhead cost 120

Total product cost 1,080

Markup (60%) 648

Targeted selling price $1,728

Yes man Manufacturing has excess capacity. Mr. kaung wants the cabinets in cherry rather than oak, so direct material costs will increase to $600 per unit. The average marketing cost of Yes man Manufacturing is $180 per unit.

For Yes man Manufacturing, what is the per unit relevant cost of the one-time-only special order?

If Mr. Kaung offered to purchase the specialized cabinet at $1,500 per unit, should Yes man Manufacturing accept this special order? Why?

Discuss two factors Yes man Manufacturing should consider before accepting this special order.