Custom Homebullders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are aiso dependent on the region of the country a particular customer lives. The following are the cost estimates for one region in the Midwest. Adninistrative costs Building costs- per square foot (basic) Duilding costs - per square foot (moderate) Building costs - per square foot (luxury) Appliances (basic) Appliances (moderate) Appliances (luxury) Utilities coats (if required) $ 20,000 90 150 $ 225 $ 15,000 $ 25,000 $ 45,000 $ 40,000 Required: A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utities. Based on the engineering estimates above, what will such a house cost to build?
Custom Homebullders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are aiso dependent on the region of the country a particular customer lives. The following are the cost estimates for one region in the Midwest. Adninistrative costs Building costs- per square foot (basic) Duilding costs - per square foot (moderate) Building costs - per square foot (luxury) Appliances (basic) Appliances (moderate) Appliances (luxury) Utilities coats (if required) $ 20,000 90 150 $ 225 $ 15,000 $ 25,000 $ 45,000 $ 40,000 Required: A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utities. Based on the engineering estimates above, what will such a house cost to build?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...
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A customer has expressed interest in having CH build a moderate, 3,000 quare-foot home on a vacant lot, which does no have utilities. Based on the engineering estimates above, what will such a house cost to build?
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