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Colibri Morales builds custom homes in Dallas. Morales was approached not too long ago by a client about a potential project, and he submitted a

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Colibri Morales builds custom homes in Dallas. Morales was approached not too long ago by a client about a potential project, and he submitted a bid of $590,000, derived as follows: Morales adds a 25% profit margin to all jobs, computed on the basis of total cost. In this client's case the profit margin amounted to $118,000($472,00025%), producing a bid price of $590,000. Assume that 60% of construction overhead is fixed. A. Suppose that business is presently very slow, and the client countered with an offer on this home of $455,000. Should Morales accept the client's offer? yes or no B. If Morales has more business than he can handle, how much should he be willing to accept for the home

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