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
Correct Answer:
Verified
Correct Answer:
Verified
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