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Business, 22.03.2021 23:10 ayoismeisjuam
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 $50 Direct labor 30 Manufacturing overhead 10 Marketing costs 20 Fixed costs: Manufacturing overhead 110 Marketing costs 30 Total costs 250 Markup (20% of total costs) 50 Estimated selling price $300 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
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Gracius Manufacturing is approached by a European customer to fulfill a one-time-only special order...
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