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jerico jerico
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9 years ago
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   $30
   Direct labor   10
   Manufacturing overhead   20
   Marketing costs   10
   Fixed costs:
   Manufacturing overhead   100
   Marketing costs   20
   Total costs   190
   Markup (10% of total costs)   19
   Estimated selling price   $209

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 same?
A) $70.00
B) $190.00
C) $209.00
D) $239.00
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
wrote...
#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
wrote...
#4
3 years ago
thx
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