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:
| Variable manufacturing support | 56 |
| Fixed manufacturing support | 120 |
| Total manufacturing costs | 1,094 |
| 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
Charles Louis Alphonse Laveran
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