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:

Unit Bias

The cognitive bias that leads individuals to perceive a unit of a particular size as a socially acceptable amount to consume or use.

Ecology of Eating

The intersection of eating behaviors with environmental and societal factors, including food availability and cultural norms.

Ecology of Eating

The study of how the environment and ecological factors influence eating habits and food choices, including cultural, social, and physical aspects.

Situational Influences

Effects of external environmental factors on an individual's behavior, decisions, or attitudes, emphasizing the role of context.