Are there any qualitative or non - financial factors that the firm should consider in the decision making process? Jax Construction Company plans to erect a new building. It will use part of the space for its own officesand lease the balance of the space to tenants. The company has two alternatives: (1) do its ownconstruction work or (2) use an independent contractor.Cost estimates have been prepared showing the costs of operation for the coming year during whichthe new building will be constructed. The costs of constructing the building, if done by Jax, are includedin that set of estimates.If the company does its own construction work, it will not be able to handle outside constructioncontracts that would contribute $500,000 to net income. The costs attributable to these outsidecontracts are excluded from the estimated costs of operation shown below.Estimated Costs toEstimated Costs toOperate -Constuction byIndependentOperate (includingConstruction) -Construction by JaxContractors(self)$6,000,0003,000,000315,000650,00050,00047,000106,00091,00060,00040,00010,00050,00010,000$7,000,0004,800,000400,000780,00055,00047,000106,00091,00060,00043,00010,00050,00010,000MaterialsLabourIndirect materials and suppliesSupervisionTaxes and insuranceHeat and lightMaintenance and repairsTruck and equipment operationDepreciationTravelTelephoneOther utilitiesMiscellaneousThe independent company has bid $4,000,000 for the job.

Quality is a very important aspect in the process of manufacture as brand and goodwill is created by…

Answered: financial factors that the firm should…

Business

Accounting

financial factors that the firm should consider in the decision making process?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5TP: You own a construction company and have recently received a contract with the local school district...

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