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Title: Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only spe Post by: jerico on Mar 13, 2015 Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers:
Direct materials $1,782 Direct labor 810 Variable manufacturing support 1,296 Fixed manufacturing support 2,808 Total manufacturing costs 6,696 Markup (50%) 3,348 Targeted selling price $ 10,044 Parker and Spitzer Manufacturing has excess capacity. Required: a. What is the full cost of the product per unit if the marketing costs is $3,000? b. What is the contribution margin per unit? c. Which costs are relevant for making the decision regarding this one-time-only special order? Why? d. For Parker and Spitzer Manufacturing, what is the minimum acceptable price of this one-time-only special order? e. For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of $5,400 per unit? Why or why not? Title: Re: Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only Post by: cyborg on Mar 19, 2015 Content hidden
Title: Re: Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only spe Post by: jerico on Mar 23, 2015 Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
Title: Re: Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only spe Post by: cyborg on Mar 23, 2015 Cool! No problem.
Title: Re: Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only ... Post by: Neelam Haroon on Sep 13, 2020 thanks
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