Georgia Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs i Markup (50%) Targeted selling price What is the full cost of the product per unit? $130 110 125 65 175 85 690 345 $1.035

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Georgia Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a
product similar to one offered to domestic customers. The company has excess capacity. The following per unit data
apply for sales to regular customers
Variable costs
Direct materials
Direct labor
Manufacturing support
Marketing costs
Fixed costs:
Manufacturing support
Marketing costs
Total costs i
Markup (50%)
Targeted selling price
What is the full cost of the product per unit?
$130
110
125
65
175
85
690
345
$1.035
Transcribed Image Text:Georgia Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers Variable costs Direct materials Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs i Markup (50%) Targeted selling price What is the full cost of the product per unit? $130 110 125 65 175 85 690 345 $1.035
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