Raffles Company routinely bids on construction jobs.Raffles first determines the budgeted product cost of the job and then applies a markup of 50%.If a bid of $15,000 is submitted for a new job,which of the following is true?
A)budgeted product cost is $15,000
B)$5,000 is pure profit
C)all costs pertaining to the job total $15,000
D)$5,000 includes fixed overhead,selling and administrative expense,and profit
E)$5,000 includes selling and administrative expense,and profit

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The Answer of Raffles Company routinely bids on construction jobs.Raffles first determines the budgeted product cost of the job and then applies a markup of 50%.If a bid of $15,000 is submitted for a new job,which of the following is true?
A)budgeted product cost is $15,000
B)$5,000 is pure profit
C)all costs pertaining to the job total $15,000
D)$5,000 includes fixed overhead,selling and administrative expense,and profit
E)$5,000 includes selling and administrative expense,and profit

Raffles Company Routinely Bids on Construction Jobs