Big Box Inc (BBi), a big box store, has approached Sweet about a special order. BBi would like Sweet to manufacture a crib for its in-house brand, Big Box Baby Cribs. The order would be for 10,000 units. The product development team has reviewed the specifications provided by BBi and estimates that it will cost $20,000 to design a suitable crib. The team has provided the following cost estimates related to the order: Materials $79.00 Direct labour $45.50 Variable MOH $45.00 MH per unit 0.70.

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

Answer rating: 100% (QA)

To calculate the minimum price that Sweet should accept for the order we need to consider the total ... View the full answer