Answer the Following Questions Using the Information Below:
Contrafic's Kitchens

question 181

Multiple Choice

Answer the following questions using the information below:
Contrafic's Kitchens 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:
$\begin{array}{lr}\text { Direct materials } & \$ 546 \\\text { Direct labor } & 360 \\\text { Variable manufacturing support } & 54 \\\text { Fixed manufacturing support } & 120 \\\quad \text { Total manufacturing costs } & 1,080 \\\text { Markup (60\%) } & 648 \\\text { Targeted selling price } & \$ 1,728\end{array}$ Contrafic's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $60 per unit. The average marketing cost of Contrafic's Kitchens is $180 per order.
-Other than price,what other items should Contrafic's Kitchens consider before accepting this one-time-only special order?

• A) reaction of shareholders
• B) reaction of existing customers to the lower price offered to Mr. Louis Cifer
• C) demand for cherry cabinets
• D) price is the only consideration

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Definitions:

Newborns

Refers to infants from birth to a few months old, focusing on their care, development, and health needs.

Easy Babies

Infants who are generally calm, easily soothed, and adaptable to new situations or routines, making them perceived as easier to care for.

Difficult Babies

Babies who exhibit challenging behaviors such as excessive crying, difficulty in soothing, and irregular sleep patterns, often due to temperament.

New Situations

Circumstances or environments that are unfamiliar and require individuals to adapt or learn new responses.