Crandle Manufacturers Inc. is approached by a potential 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:

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?
A) $400
B) $320
C) $480
D) $640

Question

Crandle Manufacturers Inc. is approached by a potential 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:

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?

For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?
A) $400 
B) $320 
C) $480 
D) $640

Quizplus · Accepted Answer

Minimum acceptable price = $140 + $100 + $105 + $55 = $400