The use of external designers costing


Clay Company has excess factory capacity. Clay is submitting a bid on a job with the following estimated costs: fixed Costs $21,000, and variable cost $33,000. The fixed costs include a normal $3,700 allocation for in house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: The use of external designers costing
Reference No:- TGS0684365

Expected delivery within 24 Hours