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Gold Coast Freshair (GCF) manufactures single room-sized air conditioners. The cost accounting system estimates manufacturing costs to be $120 per air conditioner, consisting of 75%
Gold Coast Freshair (GCF) manufactures single room-sized air conditioners. The cost accounting system estimates manufacturing costs to be $120 per air conditioner, consisting of 75% variable costs and 25% fixed costs. The company has surplus capacity available. It is GCF's policy to add a 40% mark-up to full costs.
GCF is invited to bid on a one-time-only special order to supply 50 air conditioners. What is the lowest price GCF should bid on this special order?
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