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 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

Answer the following questions using the information below: Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: $\begin{array}{l} \text { Variable costs: }\\ \text { Direct materials } & \$ 120 \\ \text { Direct labor } & 60 \\ \text { Manufacturing support } & 105 \\ \text { Marketing costs } & 45\\ \text { Fixed costs: }\\ \text { Manufacturing support } & 135 \\ \text { Marketing costs } & \underline{45}\\\text { Total costs } & 510 \\ \text { Markup (50\%) } & 255 \\ \text { Targeted selling price } & \$ 765 \end{array}$ -What is the full cost of the product per unit?

A) $330 B) $765 C) $510 D) $255 A) $330 B) $765 C) $510 D) $255

Answer the following questions using the information below: Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: $\begin{array}{lrrr}&\text { Model X }&\text { Model Y }&\text { Model Z }\\ \text { Selling price } & \$ 50 & \$ 60 & \$ 70 \\ \text { Direct materials } & 6 & 6 & 6 \\ \text { Direct labor ( } \$ 12 \text { per hour) } & 12 & 12 & 24 \\ \text { Variable support costs ( } \$ 4 \text { per machine-hour) } & 4 & 8 & 8 \\ \text { Fixed support costs } & 10 & 10 & 10 \end{array}$ -If there is excess capacity,which model is the most profitable to produce?

A) Model X B) Model Y C) Model Z D) Both Model X and Model Y have same and highest profitability A) Model X B) Model Y C) Model Z D) Both Model X and Model Y have same and highest profitability

Answer the following questions using the information below: Dynondo's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: $\begin{array}{lrrr}&\text { Model X }&\text { Model Y }&\text { Model Z }\\ \text { Selling price } & \$ 50 & \$ 60 & \$ 70 \\ \text { Direct materials } & 6 & 6 & 6 \\ \text { Direct labor ( } \$ 12 \text { per hour) } & 12 & 12 & 24 \\ \text { Variable support costs ( } \$ 4 \text { per machine-hour) } & 4 & 8 & 8 \\ \text { Fixed support costs } & 10 & 10 & 10 \end{array}$ -Which model has the greatest contribution margin per machine-hour?

A) Model X B) Model Y C) Model Z D) Both Model X and Model Y have the highest and same contribution margin per machine-hour A) Model X B) Model Y C) Model Z D) Both Model X and Model Y have the highest and same contribution margin per machine-hour