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Question:- Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup(60%) $ 546 360 54 120 1,080 648 $ 1,728 Targeted selling price Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order. For Contrafic's Kitchens, what is the full cost of the one-time-only special order? A) $1,020 B) $1,140 C) $1,080 D) $1,320

Question:- Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup(60%) $ 546 360 54 120 1,080 648 $ 1,728 Targeted selling price Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order. For Contrafic's Kitchens, what is the full cost of the one-time-only special order? A) $1,020 B) $1,140 C) $1,080 D) $1,320

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question:- Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup(60%) $ 546 360 54 120 1,080 648 $ 1,728 Targeted selling price Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order. For Contrafic's Kitchens, what is the full cost of the one-time-only special order? A) $1,020 B) $1,140 C) $1,080 D) $1,320
Transcribed Image Text:Question:- Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials Direct labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup(60%) $ 546 360 54 120 1,080 648 $ 1,728 Targeted selling price Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order. For Contrafic's Kitchens, what is the full cost of the one-time-only special order? A) $1,020 B) $1,140 C) $1,080 D) $1,320
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