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Dec 2011 Mackerel Contracting Q1 (ii)

Rrianna5y ago
Hey Sir, In the question it stated that cost per unit no more than $70,000 for the invitation to tender from the government. In this case everything was below the $70,000. Is it possible to get a question and the cost per unit is over the $70,000? If the cost per unit is over the $70,000 how will that affect my answer to the question. Would I still process to calculate all the outcomes for the payout table or just the ones below the $70,000 or just mention which cost per unit is over? Thanks
kengarrettkengarrettTutor5y ago#1
Personally, I don't really understand why the $70,000 is there at all. That was relevant to the old rules but the Zedland government has agreed to pay 7.5m plus a 19% mark-up on variable costs, so I am not sure why they worry about the total costs to Mackerel. Presumably if the total cost was over $70,000 then that combination of package and volume would simply not be an option and would not figure in the pay-off tables.
Rrianna5y ago#2
ok thanks
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