Determine the companfs bid if activity based costing is used and the bid is based upon full manufacturing cost plus 30 per cent. c. W'hich product costing method produces the more competitive bid? Nordholm Construction Company builds houses .Each job requires a bid . Nordholm's bidding policy is to estimate the costs of materials , direct labour , and subcontractor's costs . These are totaled and a mark up is applied to cover overhead and prot .In the coming year , Nordhohn believes it will be the successful bidder on ten jobs with the following total revenues and costs : Revenues 648,000 Materials E 200,000 Direct labour 250,000 Subcontractors _150,000 _600,000 Residual 48,000 The residual will cover overhead and prots . Required : F\" What is the mark up percentage on total direct cost 5? b. Suppose Nordholm is asked to bid on a job with estimated direct cost 5 of 55,000 . What is the bid? If the customer complains that the prot seems pretty high , how might Nordholm counter that ? Many products have a predictable prot or product life cycle . Describe the product life cycle from the marketing perspective .In addition , graph profit versus the different phases . Finally , discuss the impact of the product life cycle on products , learning effects setups , purchasing , and marketing expenses 2 Bay Company produces boats for 11 major buyers .Of the 11 customers , one accounts for 45 per cent of the sales with the remaining ten accounting for the rest of the sales .The ten smaller customers purchase boats in roughly equal quantities . Orders placed by the smaller customers are about the same size . Data concerning Bafs customer activity follow : Large Customer Ten Smaller Customers Units purchased 4,500 5,500 Orders placed 5 545 Number of sales calls 15 245 Manufacturing cost E 800,000 980,000 Order filling costs for Bay Company total 401,500 , and sales force costs are 260,000 Required : a. Determine the amount of selling costs (order filling and sales force costs }allocated to (1} the large customer and [2) the ten smaller customers if these costs are allocated based on sales volume. b. Determine the amount of selling costs [order filling and sales force costs )allocated to (1} the large customer and [2) the ten smaller customers if these costs are assigned using activity based costing . c. Comment on the differences in amounts attributed to the smaller customers in requirements a