Webster, Inc has received a bid for 14,000 units
The costing estimates show that the average cost per unit for this bid will be $500. The company uses cost-based pricing and adds 20% markup to total costs. What total price will Webster ask for the entire order?
A) $8,400,000
B) $7,000,000
C) $1,400,000
D) $5,600,000
A .A) Total cost of order = $500 x 14,000 units = $7,000,000
Bid price = $7,000,000 x 1.2% = $8,400,000
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