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Answer :
The lowest price Cool Air Inc. should bid on the special order is $299 per unit.
To determine the lowest price Cool Air Inc. should bid on the special order, we need to calculate the full cost per air conditioner and add a 30% markup.
The full cost per air conditioner is calculated as follows:
Variable cost per unit = 60% x $230 = $138
Fixed cost per unit = 40% x $230 = $92
Full cost per unit = Variable cost per unit + Fixed cost per unit = $138 + $92 = $230
Adding a 30% markup to the full cost per unit gives:
Selling price per unit = Full cost per unit + 30% x Full cost per unit = $230 + 0.3 x $230 = $299
Therefore, the lowest price Cool Air Inc. should bid on the special order is $299 per unit.
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