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Author Question: Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a ... (Read 125 times)

tingc95

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Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: 

Direct materials$1,825
Direct labor900
Variable manufacturing support1,300
Fixed manufacturing support3,000
Total manufacturing costs$7,025.00
Markup (50%)3,512.50
Targeted selling price$   10,537.50

Swan Manufacturing has excess capacity. 

Required: 
a.What is the full cost of the product per unit if the marketing costs is $3,000?
b.What is the contribution margin per unit?
c.Which costs are relevant for making the decision regarding this one-time-only special order? 
Why?
d.For Swan Manufacturing, what is the minimum acceptable price of this one-time-only special 
order?
e. For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of $5,400 per unit? Why or why not?


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Marked as best answer by tingc95 on Mar 6, 2021

mariahkathleeen

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tingc95

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Reply 2 on: Mar 6, 2021
Wow, this really help


nyrave

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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