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Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one - time - only special order for a product similar
Zolas' 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. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: $420.00 160.00 Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (20% of total manufacturing costs) Estimated selling price 100.00 210.00 890.00 178.00 $1,068.00 For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order? O A. $680.00 O B. $580.00 OC. $890.00 O D. $1,068.00
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