8.14 A construction estimate gives the following costs: Work Package Item Direct labor Direct material Subcontract Job and office overhead $10,000,000 20,000,000 1,400,000 600,000 (a) Find the bid, if the markup of full cost is 5%. (b) Find the bid, if we disregard the cost of direct material for a markup of 20% of conversion cost components. (Hints: This pricing policy results when the owner chooses to write the contract to have the owner buy the material and then employ a contractor to convert the material. Terms of the conversion contract require that the bid excludes direct material, but includes everything else.)