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2-C. 2-D. Basic Computer Company ( BCC ) sells its microcomputers using bid pricing. It develops its bids on a full cost basis. Full cost
2-C.
Basic Computer Company ( BCC ) sells its microcomputers using bid pricing. It develops its bids on a full cost basis. Full cost includes estimated material, labor, variable overheads, fixed manufacturing overheads, and reasonable incremental computer assembly administrative costs, plus a 10% return on full cost. BCC believes bids in excess of $1,050 per computer are not likely to be considered. BCC's current cost structure, based on its normal production levels, is $500 for materials per computer and $20 per labor hour. Assembly and testing of each computer requires 17 labor hours. BCC expects to incur variable manufacturing overhead of $2 per labor hour, fixed manufacturing overhead of $3 per labor hour, and incremental administrative costs of $8 per computer assembled. BCC has received a request from a school board for 200 computers. Using the full-cost criteria and desired level of return, which one of the following prices should be recommended to BCC's management for bidding purposes (Ignore the effect of income taxes)? $874.00. $1,026.30. $882.00. $961.40. When an employee is faced with an ethical dilemma within an organization, what is a suggested course of action that is in accordance with both the IMA ethical framework and professional responsibilities? At the first sign of a potential ethical issue between an employee and their organization, the employee should immediately seek outside legal counsel. An employee facing an ethical dilemma or issue within an organization should only utilize internally provide resources. Legal representation usually just muddies the water and can cause unnecessary tension and should be avoided in all situations. The individual should be able to consult and engage with both internal and external resources to help address and resolve potential ethical issues 2-D.
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