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Recommend changing the bid price

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Moodies is preparing a bid to supply condiments to a large retail chain. The preliminary bid price is $12/carton. The cost of renting the new kitchen required is going to be $20,000 less per year less than they expected. If the bid is to supply 60,000 cartons of condiments per year, by how much would you recommend changing the bid price?

a- Lower the bid price by $0.33 per carton.

b- Keep the bid price the same to maximize NPV

c- Raise the bid price by $0.40 per carton

d- Raise the bid price by $0.33 per carton

e- None of the answers shown.

f- Lower the bid price by $0.40 per carton.

Reference no: EM132681731

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