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Company X is approached by a new customer to fulfill a large one-time-only speci...
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Company X is approached by 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:
Company X has excess capacity. The new customer wants a customization so direct material costs will increase by $68 per unit.What is the full cost of the one-time-only special order?
| Direct materials | $552 |
| Direct labor | 370 |
| Variable manufacturing support | 60 |
| Fixed manufacturing support | 130 |
| Total manufacturing costs | 1112 |
| Markup (50%) | 556 |
| Targeted selling price | $1668 |
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