Chloe's Creations manufactures artistic hand crafted necklaces. The normal selling price for a necklace is $218...

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Chloe's Creations manufactures artistic hand crafted necklaces. The normal selling price for a necklace is $218 and her product cost is as follows: Direct materials Direct labour Manufacturing overhead Unit product cost 67 78 0 1 Most of the manufacturing overhead is fixed and is unaffected by sales volume, however, $6 of overhead is variable, depending on 2 the number of necklaces manufactured. 3 Chloe has received a request for a special order of 20 necklaces from a new customer. The customer would like special beading costing an extra $20 4 and she would also need to purchase a special crafting tool costing $320, which would not be used for other sales. This order would not impact her regular sales. 15 19 20 12 157 6 Required: 17 At least what price should she charge the new customer? Show all required calculations, presented neatly. 18 21 22 23 24 25 26 27 28 Chloe's Creations manufactures artistic hand crafted necklaces. The normal selling price for a necklace is $218 and her product cost is as follows: Direct materials Direct labour Manufacturing overhead Unit product cost 67 78 0 1 Most of the manufacturing overhead is fixed and is unaffected by sales volume, however, $6 of overhead is variable, depending on 2 the number of necklaces manufactured. 3 Chloe has received a request for a special order of 20 necklaces from a new customer. The customer would like special beading costing an extra $20 4 and she would also need to purchase a special crafting tool costing $320, which would not be used for other sales. This order would not impact her regular sales. 15 19 20 12 157 6 Required: 17 At least what price should she charge the new customer? Show all required calculations, presented neatly. 18 21 22 23 24 25 26 27 28

Answer rating: 100% (QA)

To determine the minimum price that Chloe should charge the new customer for the special order ... View the full answer