Required: 1. Given this knowledge, what amount should Go-Go-Grow Ltd. bid for this contract in each of the following circumstances: a) The Go-Go-Grow’s annual factory capacity is 90,000 units. b) The Go-Go-Grow’s annual factory capacity is 75,000 units. (To fulfil the order, you may have to pull the product from your regular production). 2. Assuming that the annual factory capacity is 90,000 units, prepare a report for your CEO explaining your justification for the bid price that you came up with in 1 a). Discuss the possible opportunities and potential disadvantages with accepting this contract with Mantel. Give both quantitative and qualitative support to your discussion.
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