Marigold Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Marigold's normal costing process, variable costs of the special order would be $17,800 and fixed costs would be $28,910. Of the fixed costs, $4,900 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order. What is the minimum price Marigold should quote to Nash?
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Home » Business » Marigold Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Marigold's normal costing process, variable costs of the special order would be $17,800 and fixed costs would be $28,910.