Question: Crandle Manufacturers Inc. is approached by a potential customer to fulfill a oneminustimeminusonly special order for a product similar to one offered to domestic customers.

Crandle Manufacturers Inc. is approached by a potential customer to fulfill a oneminustimeminusonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials

$ 130

Direct labor

60

Manufacturing support

115

Marketing costs

55

Fixed costs:

Manufacturing support

185

Marketing costs

95

Total costs

640

Markup (50%)

320

Targeted selling price

$ 960

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?

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