Analysis of the bidding behaviors of three competitors A, B and C against you, have revealed that their Bids/your cost in previous bids take the behavior shown in the following Table. Markup A 1% 0 3% 5 5% 4 7% 9% 15% 3 3 2 B 1 2 5 4 2 1 Contractor C B/C mean (u) B/C standard deviation (6) 1.062 0.072 a) In a new project with a $5,000,000 estimated cost, what is your optimum markup strategy against the three competitors A, B and C using Friedman's and Gates' models and what is the profit at optimum markup? Comment on the results b) In the final negotiation for that new project you were told that there is a high chance of additional work that will be added, in the order of about 20% of the original volume of work. Based on this information would you reduce your markup? If you decide to do that how much will you go down in your bid?