uestion content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 100 Manufacturing support 115 Marketing costs 85 Fixed costs:
uestion content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 100 Manufacturing support 115 Marketing costs 85 Fixed costs:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:
Direct materials
$120
Direct labor
100
Manufacturing support
115
Marketing costs
85
Fixed costs:
Manufacturing support
155
Marketing costs
55
Total costs
630
Markup (40%)
252
Targeted selling price
$882
What is the full cost of the product per unit?
A. $420 B. $252 C. $882 D. $630
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