The owner of a small Ontario-based cloths manufacturer must decide whether to bid on two authorities bids and, if so, at what costs.
The owner must analyze each bid by computing its total, absorption and direct prices, consider the effect of adding the quantity of each bid to the firm's current capacity level, and determine the differences between a one-time and multi-year tender contract. The owner also needs to look at the entire "fit" of the contracts with the company's present operations and guidance.
PUBLICATION DATE: February 10, 2012 PRODUCT #: W12826-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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