Coroid Manufacturers Inc. is approached by a European custom…
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity and will avoid marketing costs. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 60 Manufacturing support 105 Marketing costs 45 Fixed costs: Manufacturing support 135 Marketing costs 45 Total costs 510 Markup (50%) 255 Targeted selling price $765 For Coroid Manufacturers Inc., what is the minimum acceptable price of this special order?