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Problem 10.33 Calculating a Bid Price (LO8) Komoka Enterprises needs someone to supply it with 152,000 cartons of machine screws per year to support its

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Problem 10.33 Calculating a Bid Price (LO8) Komoka Enterprises needs someone to supply it with 152,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract it will cost you $952,000 to install the equipment necessary to start production. The equipment wal be depreciated at 30% (Class 10), and you estimate that it can be salvaged for $97,000 at the end of the five-year contract. Your fixed production costs will be $447,000 per year, and your vatiable production costs should be $16.30 per carton. You also need an initial net working capital of $102.000. If your tax fate is 35% and you require a 12% retum on your imestment, what bid price should you submit? (Do not round your intermediate calculations. Round the final answer to 2 decimal pleces. Omit S sign in your response.) Bid pilce per carton Problem 10.33 Calculating a Bid Price (LO8) Komoka Enterprises needs someone to supply it with 152,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract it will cost you $952,000 to install the equipment necessary to start production. The equipment wal be depreciated at 30% (Class 10), and you estimate that it can be salvaged for $97,000 at the end of the five-year contract. Your fixed production costs will be $447,000 per year, and your vatiable production costs should be $16.30 per carton. You also need an initial net working capital of $102.000. If your tax fate is 35% and you require a 12% retum on your imestment, what bid price should you submit? (Do not round your intermediate calculations. Round the final answer to 2 decimal pleces. Omit S sign in your response.) Bid pilce per carton

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