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Davide and Joe co. manufactures rustic furniture, and they estimate the manufacturing costs of a table to be $280 per unit. This amount consist of
Davide and Joe co. manufactures rustic furniture, and they estimate the manufacturing costs of a table to be $280 per unit. This amount consist of 60% variable costs and 40% fixed costs. The firm's pricing policy is to add a 80% markup to full costs.
Davide and Joe co. considers submitting a bid to a one-time-only special order of 100 rustic tables. The firm has excess capacity available. What is the lowest price they should bid on this special order?
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