Question
4 4pts Power Systems Inc. manufactures jet engines for the United States armed forces on a cost plus basis. The production cost of a particular
4 4pts Power Systems Inc. manufactures jet engines for the United States armed forces on a cost plus basis. The production cost of a particular jet engine is shown below: Direct materials. $200,000 Direct labor. 150,000 Manufacturing overhead: Supervisor's salary. 20,000 Fringe benefits on direct labor... 15.000 Depreciation. 12,000 Rent 11.000 Total cost If production of this engine was discontinued, the production capacity would be idle, and the supervisor would be laid off. The depreciation referred to above is for special equipment that would have no resale value and that does not wear out through use When asked to bid on the next contract for this engine, the minimum unit price that Power Systems should bid is $408,000 $365,000 $397,000 $385,000 Question 5 BSC MacBook Pro 4 pts
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