Overland Shipping Company is involved in a competitive bidding situation.Variable costs related to the project total $520,000,and allocated fixed cost is $95,000.Which of the following cost figures should be used in setting a minimum bid price if Overland has (1)excess capacity and (2)no excess capacity?
A)Choice A
B)Choice B
C)Choice C
D)Choice D
E)Choice E

Question

Overland Shipping Company is involved in a competitive bidding situation.Variable costs related to the project total $520,000,and allocated fixed cost is $95,000.Which of the following cost figures should be used in setting a minimum bid price if Overland has (1)excess capacity and (2)no excess capacity? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Quizplus · Accepted Answer

The Answer of Overland Shipping Company is involved in a competitive bidding situation.Variable costs related to the project total $520,000,and allocated fixed cost is $95,000.Which of the following cost figures should be used in setting a minimum bid price if Overland has (1)excess capacity and (2)no excess capacity? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Overland Shipping Company Is Involved in a Competitive Bidding Situation