Bad Rocks AB has been asked to submit a quote for 1,500 bathrobes at the request of one of theirs customers, Margits Kiosk. For every bathrobe sold, the designer of this particular bathrobe, Lisa Listig, must have SEK 10 in Royalty. Direct costs for the production of the bathrobes are estimated at SEK 350,000. Of these are SEK 250,000 direct material and SEK 100,000 direct salary. In their calculations, they use 12% MO surcharge, 45% TO surcharge, 3% AO surcharge and 5% FO surcharge. You also want a 25% profit margin on the order. 

a) What price should Bad Rocks AB put in the offer for Margit's kiosk? Set up the answer according to the calculation staircase. 

b) If Margits Kiosk accepts the offer and in turn uses 70% surcharge, what comes next the bathrobe to cost their customers per piece?

Answer rating: 100% (QA)

a The calculation staircase for the price of the bathrobes is as follows Direct material costs 25000... View the full answer