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What is the price per unit dantleys furniture should bid

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Question - Dantley's Furniture manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $220 per table, consisting of 75% variable costs and 25% fixed costs. The company has surplus capacity available. It is Back Forrest's policy to add a 45% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Dantley's Furniture Incorporated is invited to submit a bid to the hotel chain. What is the price per unit Dantley's Furniture should bid on this long-term order?

A) $168

B) $180

C) $319

D) $348

Reference no: EM132559995

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