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Author Question: Loft Lake Cabinets is approached by Ms. Jenny Zhang, a new customer, to fulfill a large ... (Read 88 times)

Coya19@aol.com

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on: Mar 6, 2021
Loft Lake Cabinets is approached by Ms. Jenny Zhang, 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$50.00
Direct labor62.50
Variable manufacturing support30.00
Fixed manufacturing support37.50
Total manufacturing costs180.00
Markup (60%)108.00
Targeted selling price$288.00

Loft Lake Cabinets has excess capacity. Ms. Zhang wants the cabinets in cherry rather than oak, so direct material costs will increase by $15 per unit. 

Required: 
a.For Loft Lake Cabinets, what is the minimum acceptable price of this one-time-only special 
order?
b.Other than price, what other items should Loft Lake Cabinets consider before accepting this 
one-time-only special order?
c.How would the analysis differ if there was limited capacity? 
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Coya19@aol.com on Mar 6, 2021

blazinlyss

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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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Coya19@aol.com

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

bblaney

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Reply 3 on: Yesterday
Excellent

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