Calculation of profit generated by the bidding and buyout process:
Profit= Profit rate*(Bid price-budget)
Profit= 0.20*(25000-21000)= 0.20*4000= 800
Profit generated by the bidding and buyout process is $800
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.
A building contractor is preparing a bid an new construction project. Two other contractors will be submitting bids for the same project. Based on past bidding practices, bids from the other contractors can be described by the following probability distributlons: Contractor Probability Distribution Bid A Uniform probability distribution between $600,000 and $800,000 mean bid of $700,000 and a Normal probablity distributlon with standard deviation of $50,000 If required, round your answers to three decimal places. simulate 1,000 trials of the...
A building contractor is preparing a bid on a new construction project. Two other contractors will be submitting bids for this project. In this case, the lowest bid wins the contract. Based on past bidding practices, bids from the other contractors can be described by the following probability distributions (PLEASE SHOW IN EXCEL WITH FORMULAS FOR FULL RATING) A. Suppose the building contractor submits a bid of $650,000, what is the probability that the contractor submits the lowest bid and...
Transrail is bidding on a project that it figures will cost $400,000 to perform. Using a 25% markup, it will charge $500,000, netting a profit of $100,000. However, ithas been learned that another company, Rail Freight, is also considering bidding on the project. If Rail Freight does submit a bid, it figures to be a bid about$470,000. Transrail really wants this project and is considering a bid with only a 15% markup to $460,000 to ensure winning regardless of whether...
Problem 12-18 (Algorithmic) A building contractor is preparing a bid on a new construction project. Two other contractors will be submitting bids for the same project. Based on past bidding practices, bids from the other contractors can be described by the following probability distributions: Contractor Probability Distribution of Bid A Uniform probability distribution between $590,000 and $790,000 B Normal probability distribution with a mean bid of $690,000 and a standard deviation of $49,000 If required, round your answers to three...
Monsoon Inc. is considering bidding on a government project. To do the project, the company must make an initial investment of $8 million to purchase the necessary equipment. The project will last for five years, at the end of which the equipment can be salvaged for $500,000. The equipment has a CCA rate of 30%. The bidding process for the project requires the firm to submit a bid for a constant amount of $X before-tax, to be remitted by the...
only need help with bonus part
Part II: Problem 1 (20) A contractor must submit a bid proposal on one of three possible projects. Each project offers different profits and risks associated with wining the bid and actual profits from performing the work. For example, if the contractor submits a bid and wins, the predicted profit may range from high to low due to the uncertainty of site conditions (.e O, Good ,02-Fair, θ-Poor) The following table summarizes the costs...
Calculate the total bid we should offer for a project with below info: Construction material: $30/lb Material needed: 10000 lb PM salary: $100/h PM hours: 200 Office space: $4000/month Project duration: 6 months Other overhead costs: 10% of direct costs Administration costs: $10000 Profit: 20% of total cost
Mason Industries is a custom manufacturer of circuit boards. Clearwater has been asked to prepare a bid for a customer. Clearwater’s bidding policy is to add a 30% markup to the sum of materials, labor, and overhead costs. Materials are estimated using the customer’s schematic drawings. Labor is estimated using time-and-motion studies to determine the labor time needed, multiplied by a blended wage rate of $7.50 per hour. Overhead is crudely estimated to be $29.50 per labor hour. A bid...
Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 21,000 hours of production in the Weaving Department. The department has a full capacity of 28,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $37,800 Fixed overhead 25,200 Total $63,000 The actual factory overhead was $63,800 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard...