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 $66 per unit.The average marketing cost of Kitchens Sales product is $173 per order.Other than price,what other items should Kitchens Sales consider before accepting this one-time-only special order?

Question

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 $66 per unit.The average marketing cost of Kitchens Sales product is $173 per order.Other than price,what other items should Kitchens Sales consider before accepting this one-time-only special order?

Quizplus · Accepted Answer

The Answer of 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 $66 per unit.The average marketing cost of Kitchens Sales product is $173 per order.Other than price,what other items should Kitchens Sales consider before accepting this one-time-only special order?