Answer the Following Questions Using the Information Below

question 107

Multiple Choice

Answer the following questions using the information below:
Black Forrest manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $180 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 50% markup to full costs.
-A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.Black Forrest Incorporated is invited to submit a bid to the hotel chain.What is the lowest price per unit Black Forrest should bid on this long-term order?

• A) $126
• B) $144
• C) $180
• D) $270

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Definitions:

Industrial Cleaning

The process of cleaning hazardous areas in industrial facilities such as factories, warehouses, and power plants, often involving the removal of pollutants or contaminants.

Organizational Objectives

The defined goals and aspirations that a company or entity aims to achieve through its operations and strategies.

Henry Shue

A philosopher known for his works on human rights, with a focus on the foundational rights to security and subsistence.

Sulfur Dioxide

A toxic gas with a pungent, irritating smell, used in many industrial processes and as a preservative, but known to cause environmental and health problems.