Analyze a Price Quote
How does one determine whether a price quote is fair and reasonable? Solution : This can be determined with AI MDRIVE- AI Cost Analysis . In this case a Should Cost analysis helps demonstrate whether the price proposal is within a reasonable range. Visit https://aimdrive.com/ to perform AI MDRIVE- AI Price Analysis and AI MDRIVE- AI Cost Analysis Example : Consider a new product purchase for which you have received a Price Quote of $100.00 per unit. AI MDRIVE- AI Cost Analysis: Obtain the Industry Average Cost Profile of products sold by this industry to understand the proportion of the Products’ Sales Price that is attributable to each of the five cost elements Industry Average Cost Profile % Direct Materials 60.0 Direct Labor 5.0 Manufacturing Overhead 15.0 Cost of Goods Sold (COGS) 80.0 GSA & Other Expenses 15.0 Profit Before Tax (PBT) 5.0 TOTAL 100.0 Estimate what the Direct Material cost should amount to for ...