Grounded Coffee Products manufactures coffee tables.Grounded Coffee Products has a policy of adding a 10% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

Grounded Coffee Products is approached by an overseas customer to fulfill a one-time-only special order for 5000 units.All cost relationships remain the same except for a one-time setup charge of $60,000.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order? (Round your final answer to the nearest cent. )

Question

Grounded Coffee Products manufactures coffee tables.Grounded Coffee Products has a policy of adding a 10% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

Grounded Coffee Products is approached by an overseas customer to fulfill a one-time-only special order for 5000 units.All cost relationships remain the same except for a one-time setup charge of $60,000.No additional design,marketing,or distribution costs will be incurred.What is the minimum acceptable bid per unit on this one-time-only special order? (Round your final answer to the nearest cent. )

Quizplus · Accepted Answer

11ea8a5a_a0fd_0e6b_a19c_731373baea5f_TB5540_00_TB5540_00_TB5540_00 Minimum acceptable bid per unit = $920,000 / 5000 units = 184.00

Grounded Coffee Products Manufactures Coffee Tables