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San Diego State University Operations And Supply Chain Management Assignment Help - Materials

Question - Greenland Sports, Inc. has been asked to submit a bid to the National Hockey League on supplying 1,000 pairs of professional quality skates. The cost per pair of skates has been determined as follows: Direct materials $80 Direct Labor $60 Variable Overhead $30 Fixed overhead (allocated) $20 Other non-manufacturing costs associated with each pair of skates are: Variable selling cost (commission) $25 Fixed selling and administrative cost $10 Assume the commission on the sale of skates to the National Hockey League would be reduced to $15 per pair and that available production capacity exists to produce the 1,000 pairs of skates. The lowest price the firm can bid is some price greater than: A. $185 B. $190 C. $215 D. $225

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