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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?
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