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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

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 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 $40
Direct labour 20
Manufacturing overhead 25
Sales commission 15
Fixed costs:
Manufacturing overhead 100
Marketing costs 20
Total costs 220
Markup (10%) 22
Estimated selling price $242

What is the full cost of the product per unit?

a.$60

b.$198

c.$155

d.$66

e.$220

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