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jerico jerico
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Posts: 4603
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9 years ago
Purple Trees manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $240 per table, consisting of 60% variable costs and 40% fixed costs. The company has surplus capacity available. It is Purple Trees' policy to add a 75% markup to full costs. 

A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Purple Trees is invited to submit a bid to the hotel chain. What per unit price will Purple Trees most likely bid on this long-term order?
A) $168 per unit
B) $180 per unit
C) $252 per unit
D) $420 per unit
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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#1
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9 years ago
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banderson,  bio_man

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jerico Author
wrote...
#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
wrote...
#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
wrote...
#4
4 years ago
Thank you so much. You made it easier for me.
wrote...
#5
3 years ago
Thank you
wrote...
#6
3 years ago
thanks. best answer
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