Bid Situation 5

Being even more competitive and still secure.

 Actual volume to date $739,490.00

 Actual overhead to date $80,000.00

 $80,000.00 overhead divided by

$739,490.00 actual volume = 11%

 Minimum profit at 15% risk $4,260.00

 Material with sales tax $77,206.00

Labor with taxes and insurance $28,402.00

Job expense $2,863.00

Direct job costs $108,471.00

11% overhead 11,932.00

Contractor’s cost $120,864.00

Profit 4,260.00

Bid price $125,124.00