Kitchens Sales Inc

question 59

Multiple Choice

Kitchens Sales Inc. 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:

Kitchens Sales Inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $70 per unit. The average marketing cost of Kitchens Sales product is $173 per order. For Kitchens, what is the full cost of the one-time-only special order?

• A) $1,034
• B) $1,174
• C) $1,104
• D) $1,347

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Definitions:

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