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Author Question: Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special ... (Read 18 times)

strangeaffliction

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Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers:

Direct materials$450.00
Direct manufacturing labor160.00
Variable manufacturing support100.00
Fixed manufacturing support210.00
Total manufacturing costs920.00
Markup (25% of total manufacturing costs)230.00
Estimated selling price$1150.00

For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order?
◦ $710.00
◦ $920.00
◦ $610.00
◦ $1150.00


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Marked as best answer by strangeaffliction on Mar 6, 2021

amanda_14

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strangeaffliction

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Reply 2 on: Mar 6, 2021
Excellent


Sarahjh

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Reply 3 on: Yesterday
Gracias!

 

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