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Author Question: Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large ... (Read 75 times)

bclement10

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on: Mar 6, 2021
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$554
Direct labor364
Variable manufacturing support56
Fixed manufacturing support120
Total manufacturing costs1,094
Markup (50%)547
Targeted selling price$1,641

Kitchens Sales inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $66 per unit. The average marketing cost of Kitchens Sales product is $173 per order.  Other than price, what other items should Kitchens Sales consider before accepting this one-time-only special order?
◦ reaction of shareholders
◦ reaction of existing customers to the lower price offered to Mr. Louis Cifer
◦ demand for cherry cabinets
◦ price is the only consideration
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Marked as best answer by bclement10 on Mar 6, 2021

Madisongo23

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bclement10

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

Joy Chen

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

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