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What is the minimum acceptable price of this special order

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Question - Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials $140

Direct labor 100

Manufacturing support 105

Marketing costs 65

Fixed costs:

Manufacturing support 175

Marketing costs 65

Total costs 650

Markup (50%) 325

Targeted selling price $975

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?

A) $400

B) $320

C) $410

D) $640

Reference no: EM132559986

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