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​Jack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be​ $270 per​ table, consisting of​ 80% variable costs and​ 20% fixed costs. The company has surplus capacity available. It is​ Jack's Back​ Porch's policy to add a​ 60% markup to full costs.     A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.​ Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will​ Jack's Back Porch most likely bid on this​ long-term order?   A. ​$86.40 per unit   B. ​$345.60 per unit   C. ​$432.00 per unit   D. ​$162.00 per unit

​Jack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be​ $270 per​ table, consisting of​ 80% variable costs and​ 20% fixed costs. The company has surplus capacity available. It is​ Jack's Back​ Porch's policy to add a​ 60% markup to full costs.     A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.​ Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will​ Jack's Back Porch most likely bid on this​ long-term order?   A. ​$86.40 per unit   B. ​$345.60 per unit   C. ​$432.00 per unit   D. ​$162.00 per unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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​Jack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be​ $270 per​ table, consisting of​ 80% variable costs and​ 20% fixed costs. The company has surplus capacity available. It is​ Jack's Back​ Porch's policy to add a​ 60% markup to full costs.  
 
A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.​ Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will​ Jack's Back Porch most likely bid on this​ long-term order?
 
A.
​$86.40 per unit
 
B.
​$345.60 per unit
 
C.
​$432.00 per unit
 
D.
​$162.00 per unit
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