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BUS 640 ? Price Quotes and Pricing Decisions Applied Problems ?.. A+ Answer or MONEYBACK GUARANTEED!




Q1;a.;Bright Paints can not be expected to win contract with a 0% markup rate because other firms may also be bidding with low or zero markup rates. This could be because for them also the probability of winning is highest when markup is 0%;Each tender is different in terms of the considerations. A 0% markup leads to highest % of bids won. This is the single most important reason for a 0% mark up. It still may not get all tenders depending on the costs of the rivals and their bids. If a rival has lower incremental costs or has bid lower than incremental costs (in an effort to cover its fixed costs) then it will not get the tender. Winning a tender is not only about the price it bids, but also the rivals? price bid.;b. Calculate the NPVC at each markup rate.


Paper#22911 | Written in 18-Jul-2015

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