Question

4.Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials$1,825 Direct labor900 Variable manufacturing support1,300 Fixed manufacturing support3,000 Total manufacturing costs$7,025.00 Markup (50%)3,512.50 Targeted selling price$ 10,537.50 Swan Manufacturing has excess capacity. Required: a.What is the full cost of the product per unit if the marketing costs is $3,000

Answer 1

the full cost of the product per unit if the marketing costs is $3,000 is $7,025.

Step-by-step explanation:

The cost of the special order will exclude the Fixed manufacturing support as these are common whether the order is accepted or not thus irrelevant. Remember to include the marketing costs as an additional cost.

Calculation of cost of the product :

Direct materials $1,825

Direct labor $900

Variable manufacturing support $1,300

marketing costs is $3,000

Total $7,025

Conclusion :

Thus, the full cost of the product per unit if the marketing costs is $3,000 is $7,025.