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Zola Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to

Zola Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zola Heaters has excess capacity. The following per unit data apply for sales to regular customers:

Direct materials $470

Direct manufacturing labor 120

Variable manufacturing support 50

Fixed manufacturing support 220

Total manufacturing costs 860

Markup (10% of total manufacturing costs) 86

Estimated selling price $946

Ms. Leila wanted a long-term commitment, and not a one-time-special order, for supplying this product.

Compute the most likely price to be quoted assuming the markup remains the same.

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