Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the firm makes use of in many merchandise comparable to blankets, coats, and uniforms for police and firefighters. Otero has been in enterprise since 1985 and has been worthwhile yearly since 1993. The corporate makes use of an ordinary price system and applies overhead on the foundation of direct labor hours. Otero has just lately obtained a request to bid on the manufacture of 800,00zero blankets scheduled for supply to a number of army bases. The bid have to be acknowledged at full price per unit plus a return on full price of not more than 10 p.c after earnings taxes. Full price has been outlined as together with all variable prices of manufacturing the product, an affordable quantity of mounted overhead, and affordable incremental administrative prices related to the manufacture and sale of the product. The contractor has indicated that bids in extra of $30 per blanket should not prone to be thought-about. With a view to put together the bid for the 800,00zero blankets, Andrea Lightner, price accountant, has gathered the following details about the prices related to the manufacturing of the blankets. Direct Supplies $1.70 per pound of fibers Direct Labor $6.50 per hour Direct Machine Prices* $10.00 per blanket Variable Overhead $three.00 per direct labor hour Fastened Overhead $eight.00 per direct labor hour Incremental Administrative Prices $2,450 per 1,00zero blankets Particular Price** $zero.50 per blanket Materials Utilization 6 kilos per blanket Manufacturing Charge four blankets per direct labor hour Efficient Tax Charge 35%* Direct machine prices consist of objects comparable to particular lubricants, alternative of needles used in stitching, and upkeep prices. These prices should not included in the regular overhead charges.**Otero just lately developed a brand new blanket fiber at a value of $750,00. In an effort to recuperate this price, Otero has instituted a coverage including a $zero.50 charge to the price of every blanket utilizing the new fiber. Thus far, the firm has recovered $125,00zero. Lightner is aware of that this charge doesn’t match inside the definition of full prices, as it isn’t a value of manufacturing the product.Required:1. Calculate the minimal value per blanket that Otero Fibers may bid with out lowering the firm’s working earnings. If required, spherical your calculations and ultimate reply to the nearest cent.per blanket $_____?_____2. Utilizing the full-cost standards and the most allowable return specified, calculate Otero Fibers’ bid value per blanket. For computation of the allowable return, spherical the before-tax charge of return to 2 decimal locations (for instance, 15.468% rounds to 15.47%). Spherical your ultimate reply to the nearest cent. Spherical all different intermediate computations to 2 decimal locations.per blanket $ _____?_____

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