a company wants to bid on two jobs, A and B. the cost to bid on job A is 1500, and would earn the company 12000, but the probability of getting job A is .55. the cost to bid on job b is 1200 and would earn the company 9000 but the probability of getting job b is .85.
1) creat a tree diagram
2) create a probability distribution for this (label)
3) what is the expected profit for bidding on both jobs.
A contractor is bidding on two construction jobs. they estimate the probability that he will get contract A at 0.6 and the probability of getting contract B at 0.5. They also put the chance at getting both contracts at 0.2 a) Create a labeled venn diagram for this situation? b) What is the probability that they get contract A or B c) What is the probability they get contract A given that they get contract B? d) Based on the...
A contractor is to bid on one of two construction projects, Project A or Project B. If the firm wins project A, its estimated profit is $2,000,000; if the firm wins project B, the estimated profit is $3,000,000. The cost of putting the bid together for the projects is $200,000 for A and $250,000 for B. Due to a difference in the number of qualified competitors, the firm estimates its probability of getting Project A as 0.7 and its probability...
A construction company is planning to bid on a building contract. The bid costs the company $1100. The probability that the bid is accepted is one tenth. If the bid is accepted, the company will make $66,000 minus the cost of the bid. a. What is the expected value in this situation? (Round to the nearest dollar.) b. Choose the statement below that best describes what this value means. A. In the long run, the construction company would expect...
Markup on Cost, Cost-Based Pricing Arthur Quillen Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Quillen’s direct costs and subcontractor costs as well as an amount referred to as “overhead and profit.” Quillen’s bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors’ costs. These are totaled, and a markup is applied to cover overhead and profit. In the coming year, the company believes it...
The Americo Oil Company is considering making a bid for a shale oil development contract to be awarded by the federal government. The company estimates that it has a 70% chance of winning the contract with this bid. If the firm wins the contract, it can choose one of three methods for getting the oil fro the sale. It can develop a new method for oil extraction, use an existing (inefficient) process, or subcontract the processing to a number of...
“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $2,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs....
The following information pertains to Tuner Company 11. Tumer Company completed jobs that cost $25,000 to manufacture. Record the jounal entry 12. Tuner Company sold jobs to customers on account for $56,000 that cost $19,000 to manufacture. Record the journal entries Debit Credit Accounts Date 12. Turner Company sold jobs to customers on account for $56,000 that cost $19,000 to manufacture. Record the journal entries. (Record debits first Bogin with the bounal enty to racore the sales ht stap Debit...
"Blast it!” said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $3,000. It seems we're either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers' specifications and operates a job order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of...
“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $3,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to...
“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $4,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to...