Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for...
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Welch 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. Welch 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{tabular}{|l|r|} \hline Variable costs: \\ \hline Direct materials & $30 \\ \hline Direct labour & 10 \\ \hline Manufacturing \\ overhead & 15 \\ \hline Sales commission & 5 \\ \hline Fixed costs: \\ \hline Manufacturing \\ overhead \\ \hline \multicolumn{1}{|c|}{ Marketing costs } & 100 \\ \hline Total costs \\ \hline Markup (10\%) & 180 \\ \hline Estimated selling & 18 \\ \hline price \\ \hline \end{tabular} If the European customer wanted a long-term commitment for supplying this product, what price would most likely be quoted? $66 $155 $198 $180 $217 What is the full cost of the product per unit? $60 $198 $180 $155 $66
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