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Power Systems Inc. manufactures jet engines for the United States armed forces on a cost-plus basis. The production cost of a particular jet engine is
Power Systems Inc. manufactures jet engines for the United States armed forces on a cost-plus basis. The production cost of a particular jet engine is shown below: Drodurtion Cncte In addition, the manufacturing overhead is broken down in the following table: Manufacturing overhead have no resale value and that does not wear out through use. The rent has to be paid as per a lease agreement. Question When asked to bid on the next contract for this engine, the minimum unit price that Power Systems should bid is which one of the following? $408,000$365,000$397,000$385,000
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