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Missouri Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Training Center. The
Missouri Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Training Center. The company's cost per pair of boots are as follows: Direct Materials $8, Direct Labor $6; Variable Overhead $3, Variable selling $3, Fixed overhead (allocated) $2 and Fixed Selling and Administrative $1. Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than a) $23; b)$20; c)$17 or d)$14
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