Nicholls Provisions has been asked to submit a bid on supplying tents to the Boy Scouts...
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Nicholls Provisions has been asked to submit a bid on supplying tents to the Boy Scouts of America. The company's current cost structure per tent is as follows. Direct materials Direct labor Variable menufacturing overhead Variable sales connissions $19 . Assume that there would be no variable sales commission on this special order. Determine the lowest unit price that Nicholls can bid without reducing its current level of operating income. b. Assume the company desires a 46 percent contribution margin ratio from this sale and that a special soles commission of 2 percent of the bid price will be applied to the order instead of its normal S1 variable sales commission. Determine the bid price per unit given these unique eircumstances Lowest bid price per unit bBid price per unit Nicholls Provisions has been asked to submit a bid on supplying tents to the Boy Scouts of America. The company's current cost structure per tent is as follows. Direct materials Direct labor Variable menufacturing overhead Variable sales connissions $19 . Assume that there would be no variable sales commission on this special order. Determine the lowest unit price that Nicholls can bid without reducing its current level of operating income. b. Assume the company desires a 46 percent contribution margin ratio from this sale and that a special soles commission of 2 percent of the bid price will be applied to the order instead of its normal S1 variable sales commission. Determine the bid price per unit given these unique eircumstances Lowest bid price per unit bBid price per unit
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Solution Answer A Lowest Bid means that the bid in quantitati... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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