Answer the Following Questions Using the Information Below

question 69

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.
-Black Forrest is invited to bid on a one-time-only special order to supply 100 rustic tables.What is the lowest price Black Forrest should bid on this special order?

• A) $12,600
• B) $14,400
• C) $18,000
• D) $23,000

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Definitions:

User Applies

The process by which individuals utilize and implement tools, knowledge, or systems to achieve specific tasks.

Client Specification

Detailed requirements provided by a client regarding the desired features and standards for a project or product.

Resources

Assets, materials, or inputs used in the process of achieving goals or completing projects, including human skills, technology, and financial assets.

Mean

A statistical measure representing the average value of a set of numbers, calculated as the sum of all the values divided by the number of values.