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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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