Denver Boot Corporation Has Been Asked to Submit a Bid

Denver Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Training Center.The company's costs per pair of boots are as follows:
Direct inaterial                                                       $8
Directlabor                                                              6
Variable overhead                                                    3
V ariable selling cost (commission)                         3
Fixed overhead (allocated)                                       2
Fixed selling and administrative cost                      1
Assuming that there would be no commission on this potential sale,the lowest price the firm can bid is some price greater than

A) $23.
B) $20.
C) $17.
D) $14.

Correct Answer:

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