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1 Part 1 of 3 10 points eBook Print References Wyant Memorial Hospital has asked North American Pharmaceuticals to bid on the packaging of
1 Part 1 of 3 10 points eBook Print References Wyant Memorial Hospital has asked North American Pharmaceuticals to bid on the packaging of one million doses of medication at total cost plus a return on total cost of no more than 15 percent. Wyant defines total cost as including all variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant has indicated that any bid over $0.015 per dose will be rejected. Greenway has accumulated the following information prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate $ 8.00 per direct-labor hour (DLH) $ 6.00 per DLH $10.00 per DLH $1,000 for the order 2,000 doses per DLH Problem 15-39 Part 1 Required: 1. Calculate the minimum price per dose that North American Pharmaceuticals could bid for the Wyant Memorial Hospital job that would not reduce the pharmaceutical company's income. (Round your answer to 3 decimal places.) Minimum price per dose Check my work variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant has indicated that any bid over $0.015 per dose will be rejected. Greenway has accumulated the following information prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate $ 8.00 per direct-labor hour (DLH) $ 6.00 per DLH $10.00 per DLH $1,000 for the order 2,000 doses per DLH Problem 15-39 Part 2 2. Calculate the bid price per dose using total cost and the maximum allowable return specified by Wyant Memorial Hospital. (Round your answer to 3 decimal places.) Bid price per dose
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