uestion content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly 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:       Variable​ costs:         Direct materials ​$120         Direct labor 100         Manufacturing support 115         Marketing costs 85     Fixed​ costs:

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 20.3TIF: Communication Bon Jager Inc. manufactures and sells medical devices used in cardiovascular surgery....
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Question content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly 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:     

 Variable​ costs:
 
        Direct materials
​$120
        Direct labor
100
        Manufacturing support
115
        Marketing costs
85
    Fixed​ costs:
 
        Manufacturing support
155
        Marketing costs
55
    Total costs
630
    Markup​ (40%)
252
    Targeted selling price
​$882

 

What is the full cost of the product per​ unit? 

A. ​$420 B. ​$252 C. ​$882 D. ​$630

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