Question
Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to produce the slides
Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to produce the slides for a 8-session class. From previous experience, you know that your firm follows an 80 percent learning rate. The effort for this contract will be substantial, running 50 hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed $600 per session. The customer will pay you a flat fixed rate per session. If your profit margin is 20 percent, what will the total bid price, the per session price. During what session will you break even?
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