Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only...

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Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to regular customers: 12 Direct materials Direct manufacturing labour Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (20%) Estimated selling price $850 50 100 75 1,075 215 $1.290 282 If Mr. Gladstone wanted a long-term commitment for supplying this product, what price would most likely be quoted to him? 222 Gerry's Generator Supply is approached by Mr. Gladstone, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to regular customers: 12 Direct materials Direct manufacturing labour Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (20%) Estimated selling price $850 50 100 75 1,075 215 $1.290 282 If Mr. Gladstone wanted a long-term commitment for supplying this product, what price would most likely be quoted to him? 222

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