Reference no: EM13159657
Your company, Bright Paints, is one of a dozen companies manufacturing a special reflective paint used for traffic signs. The State Department of Transportation has called for tenders to supply 10,000 gallons of blue reflective paint to be delivered within two months. You can foresee fitting in a production run of the blue paint and have decided to bid on the job. You calculate your incremental costs for this job to be $76,200. This particular contract is standard, similar in all in respects to hundreds of contracts you have bid on over the past few years. Your pricing policy has been to apply a mark-up to incremental costs to arrive at the bid price. Your mark-up has been higher when you had plenty of orders and lower when you had few or no orders to fulfill. You have assembled data relating the mark-up rate used and the percentage of contracts won at each mark-up rate, as follows.
|
Mark-up rate (%)
|
Percentage of contracts won at that rate (%)
|
|
0
10
15
20
25
30
35
|
95.9
84.8
65.4
41.3
15.7
3.0
0.2
|
a. Why would your company have bid with a zero mark-up on some past tenders? Why didn't it win all of those contracts?
b. What is the bid price that maximizes the expected contribution of the contract?
c. Why, or why not, is the fixed-price mode of bidding likely to be the best one to use for this contract?
2. In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project, where the cost of the lawsuit might range from $10,000 to $500,000 with an associated probability distribution?
|
Autobiographical or fictional account by a slave
: Explain whether you think an autobiographical or fictional account by a slave (such as Phillis Wheatley and Olaudah Equiano) is more persuasive than a biographical or fictional account by a white author (such as John Gabriel Stedman or Aphra Behn)..
|
|
How much should the government increase taxes
: Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes?
|
|
Valuations of public goods
: Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?
|
|
What is the first-order growth rate constant
: The culture can only withstand a population of 4000 per mL. Tothe nearest hour, when will the stationary phase set in?
|
|
What is the bid price that maximizes expected contribution
: Why would your company have bid with a zero mark-up on some past tenders? Why didn't it win all of those contracts? What is the bid price that maximizes the expected contribution of the contract?
|
|
Recursive function in scheme
: Write a recursive function in Scheme, called "get-element" which takes two parameters, an index and a list. The function returns the element at the given index position in the list or #f if element is not contained. Indices start at 1 and go to th..
|
|
Hypothesis about the phenomena
: What phenomenon in space would you explore further? Give us a description of the phenomena, formulate a hypothesis about the phenomena and how you would go about studying it.
|
|
Is aorta an artery
: Some snakes move into a particular area.Over time , one group ofthese snakes becomes active only at night;another group is activeonly during the day.
|
|
Is this firm in a short-run or long-run equilibrium
: What amount of profit is the firm earning? Is this firm in a short-run or long-run equilibrium? Explain
|