1. Managers need to understand customers because ________.

Question content area bottom

Part 1

A. they guide the managers to formulate pricing policies

B. they are more knowledgeable as they easy access to price and other information online

C. they are the key in influencing the board decisions and help in formulating policies with the suppliers

D. they influence the costing decisions of the product

2. Jack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $270 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Jack's Back Porch's policy to add a 60% markup to full costs.

A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will Jack's Back Porch most likely bid on this long-term order?

Question content area bottom

Part 1

A. $345.60 per unit

B. $86.40 per unit

C. $162.00 per unit

D. $432.00 per unit