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Author Question: Gracius Manufacturing is approached by a European customer to fulfill a one-time-only special order ... (Read 199 times)

awywial

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Gracius Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Gracius Manufacturing has a policy of adding a 20% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:

 Variable costs:
Direct materials$60
Direct labor30
Manufacturing overhead40
Marketing costs10
 Fixed costs:
Manufacturing overhead180
Marketing costs40
Total costs360
Markup (20% of total costs)72
Estimated selling price$432

What is the full cost of the product per unit for Gracius Manufacturing?
◦ $90
◦ $140
◦ $360
◦ $432


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Marked as best answer by awywial on Mar 6, 2021

SamMuagrove

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awywial

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


Bigfoot1984

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Reply 3 on: Yesterday
Excellent

 

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