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Please, complete the following two applied problems in a Word or Excel document. Show all your calculations and explain your results. Your company,...

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Please, complete the following two applied problems in a Word or Excel document. Show all your calculations and explain your results. 1.  Your company, Bright Paints, is one of a dozen companies manufacturing a special  reflective paint used for traffic signs. The State Department of Transportation has called  for tenders to supply 10,000 gallons of blue reflective paint to be delivered within two  months. You can foresee fitting in a production run of the blue paint and have decided to  bid on the job. You calculate your incremental costs for this job to be $76,200. This  particular contract is standard, similar in all in respects to hundreds of contracts you  have bid on over the past few years. Your pricing policy has been to apply a mark-up to  incremental costs to arrive at the bid price. Your mark-up has been higher when you had  plenty of orders and lower when you had few or no orders to fulfill. You have assembled  data relating the mark-up rate used and the percentage of contracts won at each mark- up rate, as follows.     Mark-up rate (%) Percentage of contracts won at that rate  (%) 0 10 15 20 25 30 35 95.9 84.8 65.4 41.3 15.7 3.0 0.   a. Why would your company have bid with a zero mark-up on some past  tenders? Why didn’t it win all of those contracts? b. What is the bid price that maximizes the expected contribution of the  contract? c. Why, or why not, is the fixed-price mode of bidding likely to be the best one to  use for this contract? 2.  In calculating the incremental cost of a particular project, how would you treat the  possible future costs of a lawsuit that may occur as a result of this project, where the  cost of the lawsuit might range from $10,000 to $500,000 with an associated probability  distribution? 
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