Gracius Manufacturing Is Approached by a European Customer to Fulfill

Multiple Choice

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: $\begin{array}{l}\text { Varible costs: }\\\begin{array}{lr}\text { Direct materials } & \$ 30 \\\text { Direct labor } & 10 \\\text { Manufacturing overhead } & 20 \\\text { Marketing costs } & 10\\\text { Fixed costs: }\\\text { Manufacturing overhead }& 100 \\\text { Marketing costs } & 190 \\\text { Total costs } & 190 \\\text { Markup ( } 10 \% \text { of total costs) } & 1909 \\\text { Estimated ælling price } & \$ 20\end{array}\end{array}$ 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 same?

A) $70.00
B) $190.00
C) $209.00
D) $239.00