Answer the Following Questions Using the Information Below:
Grant's Cakes

question 119

Multiple Choice

Answer the following questions using the information below:
Grant's Cakes is approached by Ms Tammy Wang,a new customer,to fulfil 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:
$$\begin{array} { l r } \text { Direct materials } & \$ 455 \\\text { Direct labour } & 300 \\\text { Variable manufacturing support } & 45 \\\text { Fixed manufacturing support } & 100 \\\text { Total manufacturing costs } & 900 \\\text { Mark-up (60\%) } & \underline { 540 } \\\text { Targeted selling price } & \$ 1440\end{array}$$ Grant's Kitchens has excess capacity.Ms Wang wants layered cream cheese pound cakes rather than plain pound cakes,so direct material costs will increase by $30 per unit.
-If Ms Wang wanted a long-term commitment for supplying this product,this analysis:

• A)would definitely be different.
• B)would not be different.
• C)may be different.
• D)does not contain enough information to determine if there would be a difference.

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Definitions:

Signal

A sign, gesture, or piece of information that communicates or indicates something specific to a receiver.

Forming Relationships

The process by which individuals establish connections with others, which can be based on various factors including friendship, love, common interests, or work.

Frontline Workers

Employees who are directly engaged with customers or the primary operations of the business, often facing the customers first.

Professionalism

The conduct, behavior, and attitude expected of an individual in a work or business environment, demonstrating competence and ethical standards.