Variable costs: | ||
Material costs ($23556000/390000) | 60.40 | per cubic yard |
Yard operation costs ($3861000)/390000] | 9.90 | per cubic yard |
Delivery costs | 6.50 | per mile |
Delivery costs | 44.50 | per truck hour |
Fairview Construction Company job: | ||
Sales (5300 x $75) | 397500 | |
Variable costs: | ||
Material costs (5300 x $60.40) | 320120 | |
Yard operation costs (5300 x $9.90) | 52470 | |
Delivery costs (6800 x $6.50) | 44200 | |
Delivery costs (280 x $44.50) | 12460 | |
Total variable costs | 429250 | |
Profit (loss) on the order $ | -31750 |
Answer: -31750