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:

What is the full cost of the product per unit for Gracius Manufacturing?
A) $90
B) $140
C) $360
D) $432

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 20% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:

What is the full cost of the product per unit for Gracius Manufacturing?

What is the full cost of the product per unit for Gracius Manufacturing?
A) $90 
B) $140 
C) $360 
D) $432

Quizplus · Accepted Answer

The Answer of 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:

What is the full cost of the product per unit for Gracius Manufacturing?
A) $90 
B) $140 
C) $360 
D) $432

Gracius Manufacturing Is Approached by a European Customer to Fulfill