Answer the Following Questions Using the Information Below:
Rockhampton Manufacturing

question 44

Multiple Choice

Answer the following questions using the information below:
Rockhampton Manufacturing is approached by a Brazilian customer to fulfil a one-time-only special order for a product similar to one offered to domestic customers. Rockhampton Manufacturing has a policy of adding a 10% mark-up to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers:
$\begin{array}{lr}\text {Variable costs:}\\\text { Direct materials } & \$ 30 \\\text { Direct labour } & 10 \\\text { Manufacturing overhead } & 15 \\\text { Marketing costs } & 5\\\text { Fixed costs: }\\\quad \text { Manufacturing overhead } & 100 \\\quad \text { Marketing costs } & \underline{20} \\\text { Total costs } & 180 \\\text { Mark-up }(10 \%) & 18 \\\text { Estimated selling price } & \underline{ \$ 198}\end{array}$

-Before accepting this one-time-only special order,Geelong Generators wants to know how much profit would be made on the order.

• A)$0
• B)$1000
• C)Loss of $75
• D)$215

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Definitions:

Interdependencies

Mutual dependencies between parts, actions, or entities, where changes in one area may produce outcomes in another, emphasizing the interconnectedness of components.

Central Repository

A centralized database or storage location where data is stored and managed, often used in software development for version control or in data management.

Unified Approach

A method or strategy that combines various elements or processes into a cohesive and coordinated whole.

Internal Improvement

Efforts or initiatives within an organization aimed at enhancing processes, practices, and performance from the inside, focusing on efficiency, productivity, and quality enhancement.