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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 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 $90 Direct labor 30 Manufacturing overhead 40 Marketing costs 30 Fixed costs: Manufacturing overhead Marketing costs Total costs Markup (10% of total costs) Estimated selling price 180 10 380 56 $336 What is the full cost of the product per unit for Gracius Manufacturing? A) $432 B) $360 C) $90 D) $140
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