Cool Air​ Inc., manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be​ $230 per air​ conditioner, consisting of​ 60% variable costs and​ 40%...




Cool Air​ Inc., manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be​ $230 per air​ conditioner, consisting of​ 60% variable costs and​ 40% fixed costs. The company has surplus capacity available. It is Cool Air​ Inc.'s policy to add a​ 30% markup to full costs.


Cool Air​ Inc., is invited to bid on a​ one-time-only special order to supply 110 air conditioners. What is the lowest price Cool Air Inc. should bid on this special​ order?










A.


​$25,300






B.


​$32,890






C.


​$15,180






D.


​$35,420








Jun 09, 2022
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