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Management Studies

Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid a contract to produce the slides for an 8-session class. From previous experience, you know that your firm follows an 85 percent learning rate. For this contract it appears the effort will be substantial, running 50 hours for the first session. Your firm bills at the rate of $100.00 per hour and the overhead is expected to run a fixed $600 per session. The customer will pay you a flat fixed rate per session. If your nominal profit margin is 20 percent, what will be the total bid price, the per session price and at what session will you break even?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91898219

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