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Author Question: Gracius Manufacturing is approached by a European customer to fulfill a one-time-only special order ... (Read 74 times)

Davideckstein7

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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$50
Direct labor30
Manufacturing overhead10
Marketing costs20
 Fixed costs:
Manufacturing overhead110
Marketing costs30
Total costs250
Markup (20% of total costs)50
Estimated selling price$300

If the European customer wanted a long-term commitment, and not a one-time-only special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same?
◦ $110
◦ $250
◦ $300
◦ $190


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Marked as best answer by Davideckstein7 on Mar 6, 2021

6ana001

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Davideckstein7

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Reply 2 on: Mar 6, 2021
Gracias!


Dominic

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Reply 3 on: Yesterday
Wow, this really help

 

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