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Carla Vista Boat Company produces custom-built houseboats. Carla Vista's house boats generally sell for prices between $ 81,600 and $ 120,000. Bob Smith, the football
Carla Vista Boat Company produces custom-built houseboats. Carla Vista's house boats generally sell for prices between $ 81,600 and $ 120,000. Bob Smith, the football coach at State University, has presented Carla Vista with the amenities he wishes to have on his boat. Carla Vista has calculated that to build this boat to Bob's specifications, materials, labor and overhead would total $ 91,825. Bob does not want to pay more than $ 96,000. Metro normally prices their house boats based on the total cost of construction plus 15%. (a) What price would Carla Vista normally quote for the houseboat Bob is requesting? (Round answers to 0 decimal places, e.g. 25,000.) Price $ An example of a discretionary fixed cost is O lease on warehouse space. sales commissions. O research and development costs. number of bolts used. If sales price and the unit variable cost remain constant and fixed costs decrease, contribution margin will O decrease. remain the same. increase. vary, depending on the circumstances
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