Question: with steps please Loft Lake Cabinets is approached by Ms. Jenny Zhang a new customer, to fulfill a large one-time-only special order for a product
Loft Lake Cabinets is approached by Ms. Jenny Zhang 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 Direct labor 6250 Variable manufacturing support 30.00 Pixed manufacturing support 3750 Total manufacturing costs 180.00 Markup (60%) 108.00 Targeted selling price $298.00 Loft Lake Cabinets has excess capacity, Ms. Zhang wants the cabinets in cherry rather than oak so direct material costs will increase by 515 per unit Required: a For Loft Lake Cabinets, what is the minimum acceptable price of this one-time-only special order? b. Other than price, what other items should Loft Lake Cabinets consider before accepting this one-time-only special order? C. How would the analysis differ if there was limited capacity
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