Holmes and Watson are divisions of Doyle, Inc., operating as profit centers. Both are profitable. One...

 

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Holmes and Watson are divisions of Doyle, Inc., operating as profit centers. Both are profitable. One of the products produced by Holmes is A62, which normally sells for $260/unit. Cost is $175/unit (60% variable). Watson is planning a new product, and is taking bids on one of the subassemblies. A62 would be appropriate for this subassembly. a) Discuss the factors Holmes should consider when submitting a bid. b) If Holmes does not submit the low bid, might Watson still benefit from accepting their bid? Discuss briefly. Holmes and Watson are divisions of Doyle, Inc., operating as profit centers. Both are profitable. One of the products produced by Holmes is A62, which normally sells for $260/unit. Cost is $175/unit (60% variable). Watson is planning a new product, and is taking bids on one of the subassemblies. A62 would be appropriate for this subassembly. a) Discuss the factors Holmes should consider when submitting a bid. b) If Holmes does not submit the low bid, might Watson still benefit from accepting their bid? Discuss briefly.

Answer rating: 100% (QA)

a The mjr issue here is fr Hlmes if etne wuld result ... View the full answer