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3 62 Question 17 (8 points) Weather Inc. manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be $190 per
3 62 Question 17 (8 points) 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. 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 for 100 units of air conditioners on this special order? Example of Answer: 4000 (No space, comma, decimal point, or $ sign) Question 18 (8 points) Rose Company prepared the following table detailing its operating percentages for last year: Sales 100% Cost of sales: Variable 60% Fixed 10% 70% Gross profit 30% Operating expenses: Variable 15% Fixed 12% 27% Net operating income 3% Bose's sales totaled $2,500,000 last year. At what sales level dollars would the company break even? Example of Answer: 4000 (No space, comma, decimal point, or $ sign)
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