Solution-Compute what is the minimum acceptable price of

Compute what is the minimum acceptable price of the one-time

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Reference no: EM132715678

Heck's Kitchens 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 $455
Direct labor 300
Variable manufacturing support 45
Fixed manufacturing support 100
Total manufacturing costs 900
Markup (60%) 540
Targeted selling price $1,440

Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.

Problem 1: For Heck's Kitchens, what is the minimum acceptable price of this one-time-only special order?

Reference no: EM132715678

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Compute what is the minimum acceptable price of the one-time

Reference no: EM132715678

Reference no: EM132715678

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