Cottonwood Cabinetry is approached by a new customer to complete a one-time-only special order for...

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Accounting

Cottonwood Cabinetry is approached by a new customer to complete a one-time-only 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 -$100
Direct labor -$125
Variable manufacturing overhead - $60
Fixed manufacturing overhead -$75
Total manufacturing costs -$360
Markup 40%- $144
Selling price - $504
Cottonwood has no excess machine or labor capacity, however for the special-order Cottonwood can rent the need machine time for $75 and additional direct labor for $80 per unit. The special-order customer wants the cabinets in cherry rather than maple, which would increase direct material costs by $45 per unit.
What is the minimum per unit price that Cottonwood Cabinetry should charge for this special-order?
$364
$485
$260
$679
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