If a Firm Has Excess Capacity, Which of the Following

If a firm has excess capacity, which of the following is a sensible bidding strategy?

A) Set a price to cover all costs.
B) Base the bid on the incremental costs incurred because the job will contribute toward covering the company's fixed costs and profit.
C) Base the bid solely on direct labour hours.
D) Common fixed costs must be allocated to individual jobs before preparing the bid.