8. 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: Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (30% of total manufacturing costs) Estimated selling price $420 100 70 200 790 237 $1027 If Ms. Leila wanted a long-term commitment, and not a one-time-special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same? A) $790 B) $590 C) $520
8. 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: Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (30% of total manufacturing costs) Estimated selling price $420 100 70 200 790 237 $1027 If Ms. Leila wanted a long-term commitment, and not a one-time-special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same? A) $790 B) $590 C) $520
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:8. 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:
Direct materials
Direct manufacturing labor
Variable manufacturing support
Fixed manufacturing support
Total manufacturing costs
Markup (30% of total manufacturing costs)
Estimated selling price
$420
100
70
200
790
237
$1027
If Ms. Leila wanted a long-term commitment, and not a one-time-special order, for supplying this
product, calculate the most likely price to be quoted assuming the markup remains the same?
A) $790
B) $590
C) $520
D) $1027
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