Weather Inc. is invited to bid on a one-time-only special order to supply 100 air conditioners. What is the lowest price Weather Inc. should bid on this special order?
Weather Inc. manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be $190 per air conditioner, consisting of 75% variable costs and 25% fixed costs. The company has surplus capacity available. It is Weather Inc.'s policy to add a 30% markup to full costs.
A) $14,250
B) $18,525
C) $25,000
D) $24,700
Answer: A
Business
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