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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

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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 Direct labor Variable manufacturing overhead Variable sales comissions $19 5 2 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 percent contribution margin ratio from this sale and that a special sales commission of 2 percent 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. Lowest bid price 1. Bid price per unit per unit

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