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Experiential Exercise The Project Proposal Bill Sergent has just received a request for proposal (RFP) from a large computer firm. The firm is...

1) Should Bill bid on the contract? Why or why not?

2. If Bill has some room for negotiation with the computer firm, what would you recommend he do?
Why?

Experiential Exercise The Project Proposal Bill Sergent has just received a request for proposal (RFP) from a large computer firm. The firm is looking  for a supplier to provide it with high-tech components for a supercomputer being built for the Department  of Defense. Bill’s firm, which is only eight months old, was founded by a group of scientists and engineers  whose primary expertise is in the area of computers and high technology. Bill is thinking about making a  reply to the RFP, but first he wants to conduct a break-even analysis to determine how profitable the  venture will be. Following is the information he will use in his analysis: The computer firm wants 12 different components built, and the purchase price will be $11,000  per component. The total cost of building the first component will be $20,000. The cost of building each of the 11 other components will be $8,000, $6,000, $5,000, $4,000,  $5,000, $6,000, $8,000, $11,000, $28,000, $40,000, and $40,000, respectively. Bill’s company will not accept any proposal that will give it less than an 11 percent return on  sales. On the basis of this information, complete the following break-even chart, and then answer the two  questions. 1. Should Bill bid on the contract? Why or why not? 
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2. If Bill has some room for negotiation with the computer firm, what would you recommend he do?  Why? 
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