Clay company has excess factory capacity clay is submitting

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Reference no: EM13579523

Clay Company has excess factory capacity. Clay is submitting a bid on a job with the following estimated costs: fixed Costs $21,000, and variable cost $33,000. The fixed costs include a normal $3,700 allocation for in house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

Reference no: EM13579523

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