Answer the following questions using the information below:

Contrafic's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:

Direct materials $546

Direct labor 360

Variable manufacturing support 54

Fixed manufacturing support 120

Total manufacturing costs 1,080

Markup (60%) 648

Targeted selling price $1,728

Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order.

30) For Contrafic's Kitchens, what is the full cost of the one-time-only special order?

A) $1,020

B) $1,140

C) $1,080

D) $1,320

1) Other than price, what other items should Contrafic's Kitchens consider before accepting this one-time-only special order?

A) reaction of shareholders

B) reaction of existing customers to the lower price offered to Mr. Louis Cifer

C) demand for cherry cabinets

D) price is the only consideration

2) Which of the following costs is NOT considered to calculate the minimum acceptable price of a one-time-only special order?

A) marketing costs

B) direct material costs

C) indirect material costs

D) special design costs