Question
Firm proposal: Work Plan Hrs Wage rate May 2000 $21 June 3000 $22 July 4000 $23 August 5000 $24 September 4000 $25 October 3000 $26
Firm proposal:
-
Work Plan
Hrs
Wage rate
May
2000
$21
June
3000
$22
July
4000
$23
August
5000
$24
September
4000
$25
October
3000
$26
November
2000
$27
-
Is $24/hr acceptable?
A new plan is negotiated as follows:
-
Work Plan
Hrs
May
2000
June
7000
July
5000
August
5000
September
2000
October
1000
November
1000
-
Is $24/hr. Acceptable now?
The firm's overhead rate is 150% of direct labor cost and G&A is 8% of total cost. The firm proposes a profit of 12%.
3. Is there a pricing impact for accepting $24/hr?
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Enron And World Finance A Case Study In Ethics
Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin
1st Edition
1403947635, 978-1403947635
