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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
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: $50 Variable costs: Direct materials Direct labor Manufacturing overhead Marketing costs Fixed costs: Manufacturing overhead Marketing costs Direct labor Manufacturing overhead Marketing costs Fixed costs: Manufacturing overhead Marketing costs Total costs Markup (20% of total costs) Estimated selling price 30 280 56 $336 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? O A. $120 O B. $336 OC. $280 O D. $206
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