Solution-What the lowest price woods should bid

What the lowest price woods should bid

Reference no: EM132842917

Question - Woods Corporation manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $ per chair, consisting of 70% variable costs. The company has surplus capacity available. It is Woods' policy to add a 60% markup to full costs.

a. Woods Corporation is invited to bid on an order to supply 200 rustic chairs. What the lowest price Woods should bid on this one-time only special order?

b. A large condominium chain is currently expanding and has decided to decorate all new condos using the rustic style. Woods Corporation is invited to submit a bid to the condo chain. What is the lowest price per unit Woods should bid on this long-term order?

Reference no: EM132842917

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What the lowest price woods should bid

Reference no: EM132842917

Reference no: EM132842917

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