Problem regarding the quoted price


Problem: Supplier Specific Information - Cybaris Corporation Cybaris Corporation (your firm) is a major producer of luxury textile fabrics for the automotive industries. Cybaris sells to a wide range of customers, including the largest manufacturer in this industry You have been advised that your firm lost a very large order for which you were counting on to meet your corporate sales plan. This order accounted for approximately fifteen percent of your firm's volume in the past year. You currently have enough capacity for 500,000 yards per year. It is therefore very important to obtain new business for 2001 through 2003. King Corporation is a firm that you have done business with regularly over time, but orders have generally been less than $100,000. You have, however, recently quoted on a large order which would represent approximately $1,450,000 in sales annually. This quote was submitted to King Corporation before you found out that you lost the earlier mentioned order. Your initial quoted price was $15.00 /yard with total design costs of $18,000. You are aware that your prices are generally higher than your competitors. However, Cybaris's reputation for quality and service are well known in the industry. You have provided similar quotes to?

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Accounting Basics: Problem regarding the quoted price
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