Top Posters
Since Sunday
28
10
10
G
9
I
8
m
8
7
m
7
K
7
6
b
6
L
6
New Topic  
fomor fomor
wrote...
Posts: 303
A year ago
Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:

Direct materials$1,700.00
Direct manufacturing labor100.00
Variable manufacturing support200.00
Fixed manufacturing support150.00
Total manufacturing costs2,150.00
Markup (30% of total manufacturing costs)645.00
Estimated selling price$2,795.00

If Mr. Stephen 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 same?
A) $2,000
B) $2,150
C) $2,795
D) $2,800
Read 22 times
3 Replies
Replies
Answer verified by a subject expert
Rule612069Rule612069
wrote...
Posts: 231
A year ago
Sign in or Sign up in seconds to unlock everything for free.
 C
Explanation:  C) Long-run pricing is a strategic decision designed to build long-run relationships with customers based on stable and predictable prices. Therefore, the most likely long-term price = $2,795.
1

Related Topics

wrote...
A year ago
Thank you for helping me with my quiz
wrote...
6 days ago
thank you
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  70 People Browsing
 179 Signed Up Today
Related Images
 814
 966
 10373