Relevant Cost and Pricing Method

ABC Sdn Bhd manufature Product A.It is approached by XYZ Sdn Bhd for a one time special order. Currently, the company only utilised 70% of its capacity and have enough excess capacity to supply XYZ Sdn Bhd.If this order is accepted, the cost to produce one unit of Product A is

DM = RM150
DL = RM20
Variable MOH = RM30
Fixed overehead = RM30

The company has a policy of quoting prices on the basis of marginal cost plus 40 per cent of cost as profit margin.

If XYZ Sdn Bhd want to sign a long term contract with ABC Sdn Bhd, what price should be quoted by ABC Sdn Bhd?

In this question , it is quite confusing for me to choose between
1) computing based on full cost
2) computing by marginal CPP

My answer is to include all cost
DM RM150, DL RM20, Variable MOH RM30, FIxed overhead RM30 = RM230
as it is a long term contract (maximum price include all cost)

I dont know the answer is correct or not Sir. this is one of the illustration given by my lecturer first-hand and not from the ACCA booklet. Appreciate your clarification on my confusion on computing based on pricing method or maximum price.

Thank you Sir John