Solved

Gracius Manufacturing Is Approached by a European Customer to Fulfill

Question 121

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 20% markup to full costs and currently has excess capacity.The following per unit data apply for sales to regular customers:
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:   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? A) $110 B) $250 C) $300 D) $190
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?


A) $110
B) $250
C) $300
D) $190

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions