Raffles Company Routinely Bids on Construction Jobs

Multiple Choice

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