Business FinancesQuestion 333 of 1605
A contractor's overhead is the same each month whether it completes 2 jobs or 8 jobs. Therefore, the per-job share of overhead is LOWEST when the contractor:
a.Completes fewer jobs over the period
b.Raises its profit margin
c.Lowers its bid prices
d.Completes more jobs over the period
Explanation
Fixed overhead is spread across all jobs done in a period. The more jobs completed, the smaller the overhead allocation each job must absorb, which is why steady work volume improves competitiveness.
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