Wardlaw Consulting Company, which experiences considerable seasonal var-iation in its activity and has a high level of fixed costs, is preparing a bid for a project. This particular project can be done at any time during the year.

Required: Based on your knowledge of COSTING:

A.How should the fixed costs be handled in the bidding approach to this project, or any other project?

B.How should variable costs be handled?

C.Assume that the company wins the bid and performs the job on a profit-able basis, consistent with the profit targets projected in the bid. Several months later, the same customer contacts Wardlaw and requests a bid to do another job. This project, however, must be done during a peak season. Whatshould Wardlaw's management do?How should Wardlaw price the new project? How do you expect the customer will respond?