Construction Bids ​

question 29

Essay

Construction Bids ​
A construction company has submitted bids on two separate state contracts,A and B.The company feels that it has a 60% chance of winning contract A,and a 50% chance of winning contract B.Furthermore,the company believes that it has an 80% chance of winning contract A if it wins contract B. ​ ​
-{Construction Bids Narrative} What is the probability that the company will win at least one of the two contracts?

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Definitions:

Factory Overhead Cost

Manufacturing expenses, except for direct materials and direct labor costs.

Direct Materials

Raw materials that are directly traceable to the production of a specific product.

Manufactured Product

Items that have been produced from raw materials through a process involving labor and machinery, making them ready for sale.

Managerial Accounting

The act of detecting, assessing, scrutinizing, and sharing economic information with executives to help in reaching the goals of an organization.