Price per unit you would bid to obtain the lowest price

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Reference no: EM132157495

At your Comp4U store, a common computer model has the following cost breakdown:

Parts and materials $900

Labor = 3 hrs x $50/hr 150

Overhead 200

Profit margin 200

Total (price to customer) $1450

A local customer has requested a bid for 20 identical computers. You figure that there is a 90% learning rate possible on the labor. If all other costs stay the same per unit and you want to maintain the same profit amount in dollars per unit, what is the price per unit you would bid to obtain the lowest price?

Reference no: EM132157495

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