(Solved): Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job ...

Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires

of direct materials,

of direct labor, and

of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure). Last year's income statement is as follows: Required: Calculate the markup that Jeremy will use. Round your answer to one decimal place. X % What is Jeremy's initial bid price? Round your answer to the nearest dollar.

Feedback Check My Work Markup Percentage

Gross margin/Cost of Goods Sold