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Power Systems, Inc. manufactures jet engines for the United States armed forces on a cost-plus basis. The cost of a particular jet engine the company manufactures is shown as follows. If production of this engine were discontinued, the production capacity would be idle and the supervisor would be laid off. When asked to bid on the next contract for this engine, the minimum unit price that Power Systems should bid is A. $397,000. B. $385,000. C. $408,000. D. $365,000. |