What price would you bid if you must win the project

Assignment Help Microeconomics

Reference no: EM13724404

You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies.

Show all of your calculations and processes. Describe your answers in three- to five-complete sentences.

What price would you bid if you must win the project?

What price would you bid if you want to maximize the expected value of the contribution from this contract?

Defend your answers with discussion, making any assumptions you feel are reasonable and/or are supported by the information provided.

Reference no: EM13724404

Questions Cloud

Provide the education requirements and job functions : Using the library, Internet, and other resources, address the following: Provide the education requirements, job functions, and salary for your chosen medical profession in the chosen country.

Assignment related to marketing plan : Question 1: Identify the target market and your secondary market for your company. Question 2: Describe your unique selling proposition (USP). Explain the key factors that make your company different than competitors within your industry.

Analysis of the company marketing mix : Use Marketing's 4 P's (Product, Place, Price and Promotion) to analyze that company's marketing mix. Analysis of the company's marketing mix

How accounting inputs are formulated into financial reports : Write an e-mail to your new employee explaining the components and the process of creating an annual report. Focus strongly on how accounting inputs are formulated into financial reports and statements for the organization.

What price would you bid if you must win the project : What price would you bid if you must win the project - What price would you bid if you want to maximize the expected value of the contribution from this contract?

Discuss the difference between absolut purchasing power : Discuss the difference between absolut purchasing power parity and relative purchaing power parity. Please write a minimum of three paragraphs answering the question above. Please also give an example that supports your answer. If you use any ou..

Define the challenge of information management : The Challenge of Information Management. Leaders typically have access to more information than followers; they are "in the know." Do they use this information for personal benefit? Do they gather information in a way which violates privacy rights..

Devlope research analysis skills : Identify at least ten academic sources at least six of which can be found in the Ashford Online Library. If you do find something on the World Wide Web,

Determine a price for each, and justify your decisions : The following are the prices paid for the American television broadcasting rights of the summer Olympics since 1980: Moscow-NBC agreed to pay $85 million; 1984 in Los Angeles-ABC paid $225 million; Determine a price for each, and justify your decis..

User Account

All Pages