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Taxila Heavy Industries Company (THIC) is competing for a production contract that requires that work begin in January 2021. The cost package for the proposal

Taxila Heavy Industries Company (THIC) is competing for a production contract that requires that work begin in January 2021. The cost package for the proposal must be submitted by August 2020. The business base, and therefore the overhead rates, are uncertain because THIC has the possibility of winning another contract, to be announced in September 2020. How can the impact of the announcement be included in the proposal? How would you handle a situation where another contract may not be renewed after January 2021, i.e., assume that announcement would not be made until March?

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