Nicholls Provisions has been asked to submit a bid on supplying tents to the Boy Scouts of America. The company's current cost structure per tent is as follows.

Direct Materials..........................$19

Direct Labor.................................$ 5

Variable Manf. Overhead.......$ 2

Variable Sales Comm..............$ 1

a. Assume that there would be no variable sales commission on this special order. Determine the lowest unit price that Nicholls can bid without reducing its current level of operating income.

b. Assume the company desires a 46% contribution margin ratio from this sale and that a special sales commission of 2% of the bid price will be applied to the order instead of its normal $1 variable sales commission. Determine the bid price per unit given these unique circumstances.

a. Lowest bid price _______ per unit

b. Bid price __________ per unit