andle Manufacturers Inc. is approached by a potential customer to fulfill a one - time- only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for regular customers: Wariable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs Fxed costs: 55 Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (S0%) 320 Targeted selling price $960 For Crandie Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $320 OB. $640 OC S480 OD. $400
andle Manufacturers Inc. is approached by a potential customer to fulfill a one - time- only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for regular customers: Wariable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs Fxed costs: 55 Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (S0%) 320 Targeted selling price $960 For Crandie Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $320 OB. $640 OC S480 OD. $400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![randle Manufacturers Inc. is approached by a potential customer to fulfill a one-time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sale
o regular customers:
Variable costs:
Direct materials
$140
Direct labor
100
Manufacturing support
Marketing costs
105
55
Fixed costs:
Manufacturing support
175
Marketing costs
65
Total costs
640
Markup (50%)
320
Targeted selling price
$960
For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.)
OA $320
OB. $640
OC $480
OD. S400
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Transcribed Image Text:randle Manufacturers Inc. is approached by a potential customer to fulfill a one-time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sale
o regular customers:
Variable costs:
Direct materials
$140
Direct labor
100
Manufacturing support
Marketing costs
105
55
Fixed costs:
Manufacturing support
175
Marketing costs
65
Total costs
640
Markup (50%)
320
Targeted selling price
$960
For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.)
OA $320
OB. $640
OC $480
OD. S400
Calculator
Next
MacBook Pro
esc
%23
&
*
2.
3
4.
6.
8
delete
R
Y
F
G H
K
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