The following data are available on Del Fabbro International, Inc.

What bid price should be submitted to insure proper coverage of fixed overhead?

The fixed (home office) overhead for the past year was $365,200. Total volume was $5,400,000.

Del Fabbro uses a profit markup of 10%.
The estimating department has indicated that the direct and project (field) indirect costs will be $800,000. Assume a 5% inflation factor and a 12% growth factor.