A reason for using a lower than usual profit markup for a specific project could be to achieve what goal?

Using a lower than usual profit markup for a specific project can effectively help cover company overhead costs. In situations where a project may not yield a high profit margin, adjusting the profit markup downwards can allow a contractor to remain competitive while ensuring that essential operating expenses are still met. Overhead costs include expenses related to running the business that are not directly tied to a specific job, such as rent, utilities, administrative salaries, and other fixed costs.

By adopting a lower markup, a contractor can secure contracts that might otherwise go to competitors, thus maintaining cash flow and operational viability. This strategic pricing approach may also be beneficial in retaining existing clients or winning new ones in a competitive market where price sensitivity is high. While other options might seem plausible, they don't directly connect to how lower profit margins specifically help in managing overhead costs.