What is the minimum acceptable price

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Question - Grant's Kitchens is approached by Ms. Tammy? Wang, 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 Labour: $ 300

Variable manufacturing support: $45

Fixed manufacturing support: $100

Total manufacturing costs: $900

Markup (60%): $540

Targeted selling price: $1,440

?Grant's Kitchens has excess capacity. Ms. Wang wants the cabinets in cherry rather than? oak, so direct material costs will increase by? $30 per unit.

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

Reference no: EM132979029

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