Dwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels....

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Dwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels. Each desk sells for $110 (without chair). The cost of each desk follows: Materials Labor Variable overhead Total costs per unit $ 36 41 6 16 $ 99 Fixed overhead ($208,000 per month, 13,000 units per month) The local university is building a new dorm and asked Dwight for a special price of $90 for an order of 900 desks. Dwight's can fill the order using existing capacity without affecting total fixed costs for the month. However, because the sale would be to a state agency, Dwight would have to file specified compliance documents with the state purchasing office. Dwight's manager estimates that the time and expenses incurred by this filing will amount to $7,200 and is independent of the number of desks ordered. Dwight's manager is unsure whether to accept this order and wants your advice. Required: c. What other factors might Dwight's manager want to consider in setting a price for the special order? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Effect on the regular business Price concession that customer may expect Fixed manufacturing overhead Dwight Furniture makes desks specially designed for small spaces, such as studio apartments and extended-stay hotels. Each desk sells for $110 (without chair). The cost of each desk follows: Materials Labor Variable overhead Total costs per unit $ 36 41 6 16 $ 99 Fixed overhead ($208,000 per month, 13,000 units per month) The local university is building a new dorm and asked Dwight for a special price of $90 for an order of 900 desks. Dwight's can fill the order using existing capacity without affecting total fixed costs for the month. However, because the sale would be to a state agency, Dwight would have to file specified compliance documents with the state purchasing office. Dwight's manager estimates that the time and expenses incurred by this filing will amount to $7,200 and is independent of the number of desks ordered. Dwight's manager is unsure whether to accept this order and wants your advice. Required: c. What other factors might Dwight's manager want to consider in setting a price for the special order? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Effect on the regular business Price concession that customer may expect Fixed manufacturing overhead

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