Answer the Following Questions Using the Information Below

question 152

Multiple Choice

Answer the following questions using the information below:
Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job.

-What is the bid price for the Winfield High School job if the company uses a 40% markup of total manufacturing costs?

• A)$2,310
• B)$588
• C)$1,680
• D)$2,058

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Definitions:

Reduced Competition

A market condition where there are fewer rivals competing for customers, often leading to increased prices and reduced innovation.

Price Discrimination

The strategy of selling the same product to different buyers at different prices based on factors like age, location, or purchase volume, often to maximize profits.

Fair Competition

A level playing field in business where no one has an unfair advantage, ensuring healthy rivalry among companies.

Global Workforces

Employees located across multiple countries around the world, often emphasizing the diversity and distribution of a company's personnel.