Question: A camper van converter is preparing a quote for a special order for a friend. Therequired base commercial van will cost 56,000. The conversion materials,

A camper van converter is preparing a quote for a special order for a friend. Therequired base commercial van will cost €56,000. The conversion materials, all ofwhich are used regularly, are currently carried in stock at their original purchaseprice of €6,000. One third of these materials have fallen in price by 10% since theiroriginal purchase. A further third are in short supply and allocating them to the special order will mean another order (which will generate a contribution margin€2,300) cannot be met. Fixed overheads are applied to jobs by adding 15% to thebase commercial van cost. What is the minimum amount the converter could quotefor this special order without reducing profits?

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