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What is the lowest price Black Forrest should bid

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Question - Black Forrest manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $250 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 55% markup to full costs. Black Forrest is invited to bid on a one-time-only special order to supply 130 rustic tables. What is the lowest price Black Forrest should bid on this special order?

Reference no: EM133077083

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