Ken Owens Construction specializes in small additions and repairs. His normal charge is $500/day plus materials. Due to his physical condition, David, an elderly gentleman, needs a downstairs room...

Extracted text: Ken Owens Construction specializes in small additions and repairs. His normal charge is $500/day plus materials. Due to his physical condition, David, an elderly gentleman, needs a downstairs room converted to a bathroom. Ken has produced a bid for $5,000 to complete the bathroom. He did not provide David with the details of the bid. However, they are shown here. Ken's Bid Detail Dollars Direct Material $2,100 Direct Labor 1,700 Variable overhead 100 Fixed overhead 700 Profit 400 $5,000 A. The town's social services has asked Ken if he could reduce his bid to $3,900. Should Ken accept the counter offer? Current Bid New Bid Direct Material $2,100 $2,100 Direct Labor 1,700 1,700 Variable overhead 100 100 Fixed overhead 700 Profit 400 $5,000 $3,900 No v B. How much would his income be reduced? C. If the town's social services guaranteed him another job next month at his normal price, could he accept this job at $3,900? Yes v Feedback