Cityscape Interior Designs has been requested to prepare a bid to decorate four model homes for a new development. Winning the bid would be a big boost for sales representative Joe Driscoll, who works entirely on commission. Suzanne Gray, the cost accountant for Cityscape, prepares the bid based on the following cost information: (Click the icon to view the Read the requirements Requirements Requirement 1. Is the $350 sp The $350 spent on the basket $350 cost 1. Is the $350 spent on the basketball tickets relevant to the bid decision? Why or why not? 2. Gray suggests that if Driscoll is willing to use cheaper furniture and artwork, he can achieve a bid of $162,000. The designs have already been reviewed and accepted and cannot be changed without additional cost, so the entire amount of reduction in cost will need to come from furniture and artwork. What is the target cost of furniture and artwork that will allow Driscoll to submit a bid of $162,000 assuming a target markup of 20% of full cost? 3. Evaluate whether Gray's suggestion to Driscoll to use the developer's tip is unethical. Would it be unethical for Driscoll to reduce the cost of furniture and artwork to arrive at a lower bid? What steps should Driscoll and Gray take to resolve this situation? Print Done = Homework: HW #3 ... Part 1 of 3 HW SC 0%, O OT 30 points O Points: 0 of 10 Cityscape Interior Designs has been requested to prepare a bid to decorate four model homes for a new development. Winning the bid would be a sales representative Joe Drisc pid based or information: (Click the icon to view the Data Table Read the requirements Requirement 1. Is the $350 S GA The $350 spent on the basket! 29,000 65,000 11,000 22,000 $350 cost Direct costs Design costs Furniture and artwork Direct labor Delivery and installation Overhead costs Design software Furniture handling General and administration Total overhead costs Full product costs 5,600 5,500 4,900 16,000 $ 143,000 Print Done sentative Joe Driscoll, who works entirely on commission. Suzanne Gray, the cost accountant for Cityscape, prepares the bid 1: the icon to view the cost information.) Click the icon to view the additional information.) equirements More Info ent 1. Is the $350 SP spent on the basketli $35 Based on the company policy of pricing at 120% of full cost Gray gives Doogan a figure of $171,600 to submit for the job. Driscoll is very concerned. He tells Gray that at that price, Cityscape has no chance of winning the job. He confides in her that he spent $350 of company funds to take the developer to a basketball playoff game where the developer disclosed that a bid of $162,000 would win the job. He hadn't planned to tell Gray because he was confident that the bid she developed would be below that amount. Driscoll reasons that the $350 he spent will be wasted if Cityscape doesn't capitalize on this valuable information. In any case, the company will still make money if it wins the bid at $162,000 because it is higher than the full cost of $143,000. Print Done