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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)

ereecah

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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 10% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:

 Variable costs:
Direct materials$90
Direct labor30
Manufacturing overhead40
Marketing costs30
 Fixed costs:
Manufacturing overhead180
Marketing costs10
Total costs380
Markup (10% of total costs)38
Estimated selling price$418

For Gracius Manufacturing, what is the minimum acceptable price of this one-time-only special order?
◦ $120
◦ $160
◦ $190
◦ $380


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Marked as best answer by ereecah on Mar 6, 2021

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ereecah

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Reply 2 on: Mar 6, 2021
Excellent


carlsona147

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Reply 3 on: Yesterday
Wow, this really help

 

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