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 10% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:

For Gracius Manufacturing, what is the minimum acceptable price of this one-time-only special order?
A) $120
B) $160
C) $190
D) $380

Question

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 10% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:

For Gracius Manufacturing, what is the minimum acceptable price of this one-time-only special order?

For Gracius Manufacturing, what is the minimum acceptable price of this one-time-only special order?
A) $120 
B) $160 
C) $190 
D) $380

Quizplus · Accepted Answer

Price for special order = $90 + $30 + $40 + $30 = $190.

Gracius Manufacturing Is Approached by a European Customer to Fulfill