Posted on by Judy

Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the Appalachian Mountains. The plans show the size of the house to be 2900 square feet. The average price for a lot and house similar to this one has been $120 per squiare foot. Fortunately, Serge is a retired plumber and feels he can save money by installing the plumbing himself. Mrs. Tolstoy feels she can take care of the interior decorating. The following average cost information is available from a local bank that makes loans to local contractors and dispenses progress payments to contractors when specific tasks are verified as complete. 24% Excavation and framing complete 8% Roof and fireplace complete 3% wiring roughed in 6% Plumbing roughed in 5% Siding on 17% Windows, insulation, walks, plaster, and garage complete 9% Furnace installed 4% Plumbing fixtures installed 10% Exterior paint, light fixtures installed, finish hardware installed 6% Carpet and trim installed 4% Interior decorating 4% Floors laid and finished a. What is the estimated cost for the Tolstoys house if they use contractors to complete all of the house? b. Estimate what the cost of the house would be if the Tolstoys use thier talents to do some of the work themselves.

a. Estimated cost for the Tolstoys house:
Estimated Total Cost = 2900 * $120 = $348,000
Estimated total cost for the house is $348,000 (2900 square feet * $120 per square foot)
b. Estimate savings of Serge’s plumbing work and Mr. Tolstoys interior decorating:
Plumbing roughed in (6% * $348,000) = $20,880
Plumbimg fixtures installed (4% * $348,000) = $13,920
Interior decorating (4% * $348,000) = $13,920
Total savings = $20,880 + $13,920 + $13,920 = $48,720
Estimate cost of house = $348,000 – $48,720 = $299,280
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"

Related posts:

  1. Using the following information, develop an optimum (minimum total cost) six-month aggregate plan 4 Total 1500 + n Month Forecast (units) 400 300 100 150 250 300 + n Beginning inventory of the first month-n Costs Output Regular time cost- S120 per unit Overtime cost $180 per unit Inventory holding cost $50 per unit per month on average inventory Back order cost = $200 per unit per month Average Inventory = (Beginning Inventory + Ending Inventory) / 2 Regular output 22 units per worker per month Overtime output maximum of 90 units per month for the entire company (all workers combined) Ending inventory for the sixth month 0 Strategy:Maintain workers and use ove ime Example: Sixth Month’s Forecasted Demand 300 + n = 300 45-345 units Total Forecasted Demand = 1500 + n = 1500 + 45 = 1545 units Beginning Inventory n- 45
  2. Demand for Deskpro PC at SuperPC is 1000 units per month, fixed shipping cost for each order placement is $4000. Each Deskpro costs SuperPC $500 to purchase from its supplier, and the holding cost is 20% of the unit cost. 1)How many computers should SuperPC order each time? 2)What is the cycle inventory? 3)What is the number of orders per year? 4)Annual ordering and holding cost? 5)Average flow time?
  3. For non-value added cost-if you have x amount of orders at shipping labor cost of y, and an average of z hours to complete. If the average completion time increased by one hour, how do you find the non-value added cost?
  4. Problem 5-7 whether to purchese the motors for the A firm plans to begin production of a new small appliance. The manager must decide appliance from a vendor at S -house. Either o ble cost of $5 per unit, and the other would have an annual fixed cost of processes could be used for in-house production; one 7 each or to produce them in would have an annual fixed cost of $160.000 and a variab $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each of (Round your answer to the neerest whole number.) the alternatives would be best For annual volume ess than (Ci to salecys best For larger quenties, best to pro is best. For larger quantities, best to produce in house at $ For annual volume less than per unit **ア