Gracius Manufacturing Is Approached by a European Customer to Fulfill

question 8

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

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Definitions:

Self-Actualizing

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Self-Determination Theory

A theory of motivation that emphasizes the role of intrinsic and extrinsic motivation in driving human behavior and the importance of autonomy, competence, and relatedness.

External Rewards

Incentives or benefits provided by external sources, such as money, praise, or recognition, that motivate individuals to perform certain actions.

Exciting Work

Employment or tasks that stimulate enthusiasm and interest, often because of novelty, variability, or the challenge they present.