1. Business
  2. Operations Management
  3. at your comp4u store a common computer model has the...

Question: at your comp4u store a common computer model has the...

Question details

At your Comp4U store, a common computer model has the following cost breakdown:

Parts and materials                     $1000

Labor = 3.5 hrs x $50/hr                 175

Profit margin                                      300

Total (price to customer)              $1475

A local customer has requested a bid for 20 identical computers. You figure that there is a 90% learning rate possible on the labor. If all other costs stay the same per unit and you want to maintain the same profit amount in dollars per unit, what is the price per unit you would bid?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution