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1. 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: Variable costs: Direct materials $130 Direct labor 110 Manufacturing support 125 Marketing costs 65 Fixed costs: Manufacturing support 175 Marketing costs 85 Total costs 690 Markup (50%) 345 Targeted selling price $1,035 What is the full cost of the product per unit

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Answer:

Full cost per unit = $690

Explanation:

The full cost of a product is the sum of its variable cost per unit and its fixed cost per unit. Costing a product at its full cost ensures that all costs are recovered both variable cost and fixed cost

The full cost for Crandle's product would be:

                                                         $

Material                                        130

Labour                                        110

Manufacturing                       125

Market                                        65

Variable cost                           430

Fixed cost

Manufacturing                      175

Marketing                                     85

Full cost per unit                         690

Full cost per unit = $690

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