The Computron, Inc.The Computron, Inc. is facing issues regarding the bid price for the Computron 1000X, the future operation of the Frankfurt plant, the The impact on production due to the current market breakdown. The main concern regarding Computron is that if the 1000X bid must not exceed 20% of the lowest bid to obtain the contract. It is strongly recommended to obtain a tender for the operation of a new factory. Various questions regarding price reduction, high or low bidding and their advantages and disadvantages, current market situation and competitors are discussed here. Concerning the mark-up price, management does not allow it to go below 33.3%. Although some of the other options to consider based on past good relations with Konig explain to them the benefits of high quality regardless of price, other options to consider for the future if the offer is not won, etc. These options are tested against production. , its cost, benefits new projects.Situation AnalysisReferring to the current problem, Computron is offering $622,400 to sell its 1000x digital computer to Konig, which is 43% higher than the lower bid. A new manufacturing plant in Frankfurt may have to sit idle for a few months if Computron fails to win the tender. The Computron 1000X is also a purpose-built computer, while Konig needs a machine with less precision and flexibility. Here are the other problems:1. Discount possible to try your luck:|Company |Free price ||Computron |$622,400 |