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Markup on Cost, Cost-Based Pricing Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes

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Markup on Cost, Cost-Based Pricing Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Whang's direct costs and subcontractor costs as well as an amount referred to as "overhead and proft." Whang's bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors' costs. These are totaled, and a markup is applied to cover overhead and pront. In the coming year, the company believes it will be the successful bidder on 10 jobs with the following total revenues and costs: Required! 1. Given the preceding information, what is the markup percentage on total direct costs? 2. Suppose Whang is asked to bid on a job with estimated direct costs of 4590,000 . What is the bid? 3. Eniefly explain how Whang Constructions accountant might utilze data analytics to help decide on the markup percentage to use in setting prices. (see Exhibits 2.5 and 2.6 , for a review of data analyeics types.) However, one iogical use of dota analysics would be for the accountant to utilize analytics to assets the markup percentage applied by ocher similar companies in the industry. Markup on Cost, Cost-Based Pricing Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Whang's direct costs and subcontractor costs as well as an amount referred to as "overhead and proft." Whang's bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors' costs. These are totaled, and a markup is applied to cover overhead and pront. In the coming year, the company believes it will be the successful bidder on 10 jobs with the following total revenues and costs: Required! 1. Given the preceding information, what is the markup percentage on total direct costs? 2. Suppose Whang is asked to bid on a job with estimated direct costs of 4590,000 . What is the bid? 3. Eniefly explain how Whang Constructions accountant might utilze data analytics to help decide on the markup percentage to use in setting prices. (see Exhibits 2.5 and 2.6 , for a review of data analyeics types.) However, one iogical use of dota analysics would be for the accountant to utilize analytics to assets the markup percentage applied by ocher similar companies in the industry

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