Recalculate the cost of the MOH RFP and the expected revenue based on ABC and an expected 30% markup for profit.

MOH requires the design and delivery of a customized Heavy Duty mechanics couse.

Each response to our RFP is to include:

1. A fixed price for the design and delivery of the customized course.
2. An expected timeline for production

VI Technical College Proposal

1. Calculation of Fixed Price (Based on 15 students and a 5-week course)

Instructors	$ 7,400
Qualified Mechanics	8,900
Student Tools	10,100
Standard Overhead Burden	28,350
Total Cost	$ 54,750
Profit Margin	16,425
Fixed Price Quote	$ 71,175

2. Timeline for Delivery

Course development- 3 Weeks from the signing of Contract

Course delivery- 5 Weeks

Calculation of Standard Design Labour and Overhead Burden

Projected Overhead Costs Full Year
Electricity-classroom		$ 15,000
Supplies- Shop		3,000
Rent-Facility		95,000
Amortization- Instructional vehicles		62,500
Amortization- Equipment & Tools		13,000
Supervisors-		85,000
Property taxes		10,000
Total Overhead costs	A	$ 283,500
Expected # of courses full year	B	10

Standard Overhead Burden to be applied to 28,350