Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials $450.00 Direct manufacturing labor 160.00 Variable manufacturing support 100.00 Fixed manufacturing support 210.00 Total manufacturing costs 920.00 Markup (25% of total manufacturing costs) 230.00 Estimated selling price $1150.00 For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order

Zolas' Heaters

The minimum acceptable price of this one-time-only special order is:

= $887.50.

Explanation:

a) Data and Calculations:

Direct materials                                             $450.00

Direct manufacturing labor                             160.00

Variable manufacturing support                     100.00

Fixed manufacturing support                         210.00

Total manufacturing costs                             920.00

Markup (25% of total manufacturing costs) 230.00

Estimated selling price                               $1,150.00

The minimum acceptable price of this one-time-only special order:

Direct materials                                             $450.00

Direct manufacturing labor                             160.00

Variable manufacturing support                     100.00

Total manufacturing costs                               710.00

Markup (25% of total variable mfg costs)       177.50

Selling price                                                   $887.50

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!