)Ahmed constructs buildings in Abu Dhabi. Ahmed was approached recently by a customer regarding a potential project, and he submitted a bid of $967,600, derived as follows: (5 Marks)

Land	$160,000
Raw materials	200,000
Labor costs	240,000
	$600,000
Construction overhead25% of direct costs	150,000
Allocated corporate overhead	70,000
Total cost	$820,000

Ahmed adds an 18% profit margin to all jobs, computed on the basis of total cost. In this client's case the profit margin amounted to $147,600 ($820,000 x 18%), producing a bid price of $967,600. Assume that 70% of construction overhead is fixed.Suppose that business is presently very slow, and the client countered with an offer on this home of $780,000. Should Ahmed accept the client's offer? Why?