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Author Question: Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large ... (Read 80 times)

Shelles

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Kitchens Sales Inc. 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$556
Direct labor362
Variable manufacturing support60
Fixed manufacturing support126
Total manufacturing costs1,104
Markup (50%)552
Targeted selling price$1,656

Kitchens Sales Inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $70 per unit. The average marketing cost of Kitchens  Sales product is $173 per order.  For  Kitchens, what is the full cost of the one-time-only special order?
◦ $1,034
◦ $1,174
◦ $1,104
◦ $1,347


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Marked as best answer by Shelles on Mar 6, 2021

billybob123

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Shelles

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


sarah_brady415

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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