What is the minimum amount the converter could quote

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Reference no: EM133342199

Case: A camper van converter is preparing a quote for a special order for a friend. The required base commercial van will cost €56,000. The conversion materials, all of which are used regularly, are currently carried in stock at their original purchase price of €6,000. One-third of these materials have fallen in price by 10% since their original purchase. A further third are in short supply and allocating them to this special order will mean another order (which will generate a contribution margin of €2,300) cannot be met. Fixed overheads are applied to jobs by adding 15% to the base commercial van cost. What is the minimum amount the converter could quote for this special order without reducing profits?

Reference no: EM133342199

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