Question: Direct Materials $145 Direct Labor 85 Variable Manufacturing 30 Fixed Manufacturing 80 Total Manufacturing Costs 340 Gucci Inc. is approached by a new customer, to

Direct Materials	$145
Direct Labor	85
Variable Manufacturing	30
Fixed Manufacturing	80
Total Manufacturing Costs	340

Gucci Inc. is approached by a new customer, to fulfill a large one-time-only special order for a luxury handbag similar to one offered to regular customers. The company's accounting system shows following per unit cost data for this handbag:

The customer approached Gucci Inc. about buying 125 of these handbags as holiday gifts for the discounted price of $325. The customer requires that the handbags be customized with specific initials which will result in additional direct materials and direct labor of $15 and $10 per handbag, respectively.

REQUIRED:

For Gucci Inc., what is the minimum acceptable price of this one-time-only special order (that is the price at which they will not make a profit nor lose money on the order)?
What is the financial advantage (disadvantage) of accepting the special order from the customer?
Other than price, what other items should Gucci Inc., consider before accepting this one-time-only special order (include your response to this question within your Executive Summary)?
An Executive Summary is required for this problem.

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