Cottonwood Cabinetry is approached by a new customer to complete a one-time-only special order for...
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Cottonwood Cabinetry is approached by a new customer to complete a onetimeonly special order for a product like the one currently offered to Cottonwoods' customers. The following per unit financial data apply for current regular sales: Direct materials $ Direct labor $ Variable manufacturing overhead $ Fixed manufacturing overhead $ Total manufacturing costs $ Markup $ Selling price $ Cottonwood has no excess machine or labor capacity, however for the specialorder Cottonwood can rent the need machine time for $ and additional direct labor for $ per unit. The specialorder customer wants the cabinets in cherry rather than maple, which would increase direct material costs by $ per unit. What is the minimum per unit price that Cottonwood Cabinetry should charge for this specialorder? $ $ $ $
Cottonwood Cabinetry is approached by a new customer to complete a onetimeonly special order for a product like the one currently offered to Cottonwoods' customers. The following per unit financial data apply for current regular sales:
Direct materials $
Direct labor $
Variable manufacturing overhead $
Fixed manufacturing overhead $
Total manufacturing costs $
Markup $
Selling price $
Cottonwood has no excess machine or labor capacity, however for the specialorder Cottonwood can rent the need machine time for $ and additional direct labor for $ per unit. The specialorder customer wants the cabinets in cherry rather than maple, which would increase direct material costs by $ per unit.
What is the minimum per unit price that Cottonwood Cabinetry should charge for this specialorder?
$
$
$
$
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