Yara manufactures state-of-the-art chairs. Manufacturing costs are expected to be £120 per chair, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. Yara's policy is to add a 60% profit margin to full costs. Yara is invited to bid on a one-time-only special order to supply 200 chairs. What is the lowest price Yara should bid on this order? a. £24,000 b. £14,400 c. £38,400 d. £16,800
Yara manufactures state-of-the-art chairs. Manufacturing costs are expected to be £120 per chair, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. Yara's policy is to add a 60% profit margin to full costs. Yara is invited to bid on a one-time-only special order to supply 200 chairs. What is the lowest price Yara should bid on this order? a. £24,000 b. £14,400 c. £38,400 d. £16,800
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 7EB: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has...
Related questions
Question
Yara manufactures state-of-the-art chairs.
Yara is invited to bid on a one-time-only special order to supply 200 chairs. What is the lowest price Yara should bid on this order?
a. |
£24,000 |
|
b. |
£14,400 |
|
c. |
£38,400 |
|
d. |
£16,800 |
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