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Case: You work for an organization that builds training packets for industry clients. A client will typically contract with your firm to build standard work

Case: You work for an organization that builds training packets for industry clients. A client will typically contract with your firm to build standard work and trainings for each position they regularly hire for within their production process. Each time you create a training packet for a client, you know from experience that you can capitalize on an 85% learning rate. A recent client is asking for an estimate of how much it will cost to produce trainings for 15 different positions on their production line. After an initial meeting with the client, you estimate that the first training packet could be produced in 15hrs of work. You also estimate the variable cost for your organization at $115 per hour of development, with $300 in overhead costs per training packet.
If your organization wants a 30% profit margin above cost, what should you bid for the total job?
What is your bid per training packet? (bid should be evenly distributed)
Which is the first training packet where you should see a profit?
Have you made any assumptions with either of the estimates above?

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