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Author Question: Newport Manufacturing makes and sells backyard fire pits. Each fire pit regularly sells for $269. ... (Read 68 times)

dekbert

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Newport Manufacturing makes and sells backyard fire pits. Each fire pit regularly sells for $269. The following cost data per unit are based on a full capacity of 3,000 fire pits produced each period.

Direct material$100
Direct labor75
Manufacturing overhead (75% variable)64

Newport is negotiating a special order for the sale of 75 fire pits to an overseas customer who is located in a country that does not have civil liberties for its population. The only selling cost that would be incurred on the special order would be a $10 sales commission. Newport is expected to make 2,500 fire pits for the special order.

Required:

a.What is the minimum selling price Newport should negotiate for the special order?
b.What are three factors other than relevant costs that Newport should consider
concerning
this special order?


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Marked as best answer by dekbert on Feb 5, 2023

Tester

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dekbert

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Reply 2 on: Feb 5, 2023
:D TYSM


phuda

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Reply 3 on: Yesterday
Excellent

 

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