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A foreign corporation has asked for bids on an order for 200,000 units of product X. Bravo Company is considering making a bid in order
A foreign corporation has asked for bids on an order for 200,000 units of product X. Bravo Company is considering making a bid in order to use productively its idle capacity. Bravo is currently operating at 80% of its 1,000,000 unit total capacity. Bravo's variable costs are $50 per unit, while its fixed costs amount to $4,000,000. What is the minimum price Bravo should bid to the foreign corporation?
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