Question: Bigco, a big box store, has approached SDL about a special order. BigCo would like SDL to manufacture a bike fir its in-house brand, Value

Bigco, a big box store, has approached SDL about a special order. BigCo would like SDL to manufacture a bike fir its in-house brand, Value Plus. The order would be for 10,000 units. The product development team has reviewed the specifications provided by BigCo and estimates that it will cost $20,000 to design a suitable bike. The team has provided the following cost estimates related to the order

Materials - $79

Direct labour - $45.50

Variable MOH - $45

MH per unit - $0.70

Calculate the minimum price that SDL should accept for the order as well as any other factors should be considered.

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