lpha Company is approached by a customer to provide a one-time only special order for a product similar to one offered to its current customers. Alpha company has excess capacity. The following per unit data apply for sales to regular customers:
Alpha Company is approached by a customer to provide a one-time only special order for a product similar to one offered to its current customers. Alpha company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs
Direct materials sh. 40
Direct labor 20
Manufacturing support 35
Marketing costs 15
Fixed costs
Manufacturing support 45
Marketing costs 15
Total costs 170
Mark up (50%) 85
Targeted selling price 255
What is the contribution to fixed costs if the one- time- only special order for 1000 is accepted for sh. 180 per unit by Alpha company?
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