Nash Bridges Construction Company is a building contractor serving the Gulf Coast region. The company recently bid on a Gulf-front causeway improvement in Biloxi, Mississippi. Nash Bridges has incurred bid development and job cost-out expenses of $25,000 prior to submission of the bid. The bid was based on the following projected costs:

A. What is Nash Bridges’ minimum acceptable (breakeven) contract price, assuming that the company is operating at peak capacity?
B. What is the Nash Bridges’ minimum acceptable contract price if an economic downturn has left the company with substantial excesscapacity?

  • CreatedFebruary 13, 2015
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