The bid for a project is $25,000 and the budget for the project is $21,000. Using...

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The bid for a project is $25,000 and the budget for the project is $21,000. Using...

The bid for a project is $25,000 and the budget for the project is $21,000. Using a minimum profit and overhead markup of 20%, determine profit generated by the bidding and buyout process.

business accounting

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Answer 1

Answer #1

Profit generated by the bidding and buyout process = Profit rate x (Bid price - budget)

Profit generated by the bidding and buyout process = 0.20*(25000-21000)

= 0.20*4000

= $800

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Answer 2

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