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When asked to bid on the next contract for this engine

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Question - Gaza systems, Inc, manufactures jet engines The cost of a particular jet engine the company manufactures is shown below: Direct forces on a cost-plus basis: 300,000, Direct Labor: 00,000, Overhead:, Supervisor's Salary15,000, Fringe benefits on direct labor 35,00.0, depreciation 18,000, rent 15,000. Sales related to jet machines amounted to 255,000 quarterly.

If production of this engine were discontinued, the production capacity would be idle, and the supervisor would be laid off. When asked to bid on the next contract for this engine, the minimum unit price that Gaza Systems should bid?

Reference no: EM132974093

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