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Welch 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.
Welch 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. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers: Direct materials cost Direct labour cost $40 $20 Variable manufacturing OH cost $35 Fixed manufacturing OH cost $45 Variable marketing cost $15 Fixed marketing cost $15 Total costs per unit $170 Markup (50%) $85 Targeted selling price $255 What is the full cost of the product per unit? $110 $170 $255 $95
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