Broncho Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Training Center. The company's costs per pair of boots are as follows: Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than
A) $23.
B) $20.
C) $17.
D) $14.

Question

Broncho Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Training Center. The company's costs per pair of boots are as follows:  Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than
A) $23. 
B) $20. 
C) $17. 
D) $14.

Quizplus · Accepted Answer

The lowest price the firm can bid is the total cost per pair of boots, which is $17. It cannot bid lower than its own cost, otherwise, it will incur a loss on the project.

Broncho Boot Corporation Has Been Asked to Submit a Bid