MyStyle 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 Jay Driscoll, who works entirely on commission. Suzanne Graham, the cost accountant for MyStyle, prepares the bid based on the following cost information: (Click the icon to view the cost information.) (Click the icon to view the additional information.) Read the requirements. Requirement 1. Is the $550 spent on the basketball tickets relevant to the bid decision? Why or why not? The $550 spent on the basketball tickets is a cost and is, therefore, to the bid decision. MyStyle will incur the $550 cost More info Based on the company policy of pricing at 120% of full cost, Graham gives Doogan a figure of $187,200 to submit for the job. Driscoll is very concerned. He tells Graham that at that price, MyStyle has no chance of winning the job. He confides in her that he spent $550 of company funds to take the developer to a basketball playoff game where the developer disclosed that a bid of $177,000 would win the job. He hadn't planned to tell Graham because he was confident that the bid she developed would be below that amount. Driscoll reasons that the $550 he spent will be wasted if MyStyle doesn't capitalize on this valuable information. In any case, the company will still make money if it wins the bid at $177,000 because it is higher than the full cost of $156,000. Data table Requirements 1. Is the $550 spent on the basketball tickets relevant to the bid decision? Why or why not? 2. Graham suggests that if Driscoll is willing to use cheaper furniture and artwork, he can achieve a bid of $177,000. 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 $177,000 assuming a target markup of 20% of full cost? 3. Evaluate whether Graham'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 Graham take to resolve this situation