Otero F bers nc., spec zes n the manutecture o synthetic fibers that the com Peny uses in many products such as bankets costs and un om s or police and firefighters. Otero has been in business nce 1985 and has been profitable every year since 1993 The company uses a standard cost system and appliss overhead on the basiz of direct labor hours Otero has recently received a request to bid on the manufacture of 800.000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes, Full cost has been defined as including al variable costs of manufacturing the product, a reasonable amount of fisced overhesd, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicsted that bids in excess of $30 per blanke are not likaly to be considerad. In order to prepare the bid for the 800,000 blankets, Andres Lightner cost accountant, has gathered the following information about the costs associated with the production of the blenkets Direct material Direct labor Direct machine costs Variable aoverhesd Fixed overhead Incremental administrative costs Special foa Materiel usege Production rata Effective tax rate Direct machine costs consist of items suc pecial lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhesd rates. $1.70 per pound of fibers 56.50 per hour 10.00 per blanker 3.00 per direct labor hour $8.00 per direct labor hour $2.450 per 1,000 blankets 0.50 per blanket 6 pounds per blenket blankats par diract labor hour 35 Otsro recently develaped a new blankat fiber a a cost of $750,000. In an affort to recover this coat, Onero has instituted a policy of adding a $0.50 foa to the cost of each blanker using tha new fiber. To dats, the company has recoverad $125,000. Lightner knows that this fa does not fit within the definition of full cost, as it is not a cost of manufacturing the product Required 1. Calculete the minimum price per blenke: that Otero Fibers could bid without reducing the company's opersting income. IF required, round your calculations and final answer to the nearest cent 25.03 per blanket 2. Using the ull-cost criteria and the maximum allowable re specified calculate Otero Fiber bid price per b anker. For computation of the allowable e um final answer to the nearest cent. Round all other intermediate computations to two decimel places. ou d the before tax are of r turn to two decima places for example 15.468% rou s to 15.47% Round your Otero F bers nc., spec zes n the manutecture o synthetic fibers that the com Peny uses in many products such as bankets costs and un om s or police and firefighters. Otero has been in business nce 1985 and has been profitable every year since 1993 The company uses a standard cost system and appliss overhead on the basiz of direct labor hours Otero has recently received a request to bid on the manufacture of 800.000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes, Full cost has been defined as including al variable costs of manufacturing the product, a reasonable amount of fisced overhesd, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicsted that bids in excess of $30 per blanke are not likaly to be considerad. In order to prepare the bid for the 800,000 blankets, Andres Lightner cost accountant, has gathered the following information about the costs associated with the production of the blenkets Direct material Direct labor Direct machine costs Variable aoverhesd Fixed overhead Incremental administrative costs Special foa Materiel usege Production rata Effective tax rate Direct machine costs consist of items suc pecial lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhesd rates. $1.70 per pound of fibers 56.50 per hour 10.00 per blanker 3.00 per direct labor hour $8.00 per direct labor hour $2.450 per 1,000 blankets 0.50 per blanket 6 pounds per blenket blankats par diract labor hour 35 Otsro recently develaped a new blankat fiber a a cost of $750,000. In an affort to recover this coat, Onero has instituted a policy of adding a $0.50 foa to the cost of each blanker using tha new fiber. To dats, the company has recoverad $125,000. Lightner knows that this fa does not fit within the definition of full cost, as it is not a cost of manufacturing the product Required 1. Calculete the minimum price per blenke: that Otero Fibers could bid without reducing the company's opersting income. IF required, round your calculations and final answer to the nearest cent 25.03 per blanket 2. Using the ull-cost criteria and the maximum allowable re specified calculate Otero Fiber bid price per b anker. For computation of the allowable e um final answer to the nearest cent. Round all other intermediate computations to two decimel places. ou d the before tax are of r turn to two decima places for example 15.468% rou s to 15.47% Round your