What is the minimum amount bespoke joiners could quote

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Reference no: EM132744948

Problem 1: Bespoke Joiners is quoting to refit a local restaurant. An analysis of the time and materials required for the refit has been prepared at a cost of €1,000. The required labour will be 750 hours at an average cost of €30 per hour. The cost of the required materials is €60,000 at current purchase prices. A quarter of these materials are currently held in stock by Bespoke but can no longer be used. Their scrap value is €5,000. Fixed overheads of €10,000 will be assigned to the work. What is the minimum amount Bespoke Joiners could quote without lowering their profits?

A. €82,500

B. €73,500

C. €72,500

D. €77,500

Reference no: EM132744948

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