Question

$18 per hour. old ght ost tes on Fixed cost information: The painting company charges $1200 per job to cover travel expenses, clothing, cloths, thinner, administration, and soon. ing 2-46 You want a mountain cabin built for weekend trips, A vacations, to host family, and perhaps eventually to retire in. After discussing the project with a local contractor, you receive an estimate that the total con- struction cost of your 2000-ft2 lodge will be $250,000. The percentage of costs is broken down as follows: st. Percentage of Cost Items Total Costs ed Construction permits, legal and 1S title fees Roadway, site clearing, preparation Foundation, concrete, masonry Wallboard, flooring, carpentry Heating, ventilation, air 15 13 12 13 conditioning (HVAC) Electric, plumbing, communications Roofing, flooring Painting, finishing 12 17 100 000-ft2 (a) What is the cost per square foot of the 2 lodge

Answer 1

a) Total cost of 2000-ft² lodge = $250,000

Cost per Square Foot = Total cost/Size of Lodge in Sq. Ft

= $250,000/2,000 Sq. Ft. = $125 per square foot

b) i) Calculation of Estimated cost of 4000-ft² lodge is shown as follows:- (Amounts in $)

Size of Lodge	2000-ft2	4000-ft2
Total Estimated Cost (A)	250,000	500,000 (125*4000)
Construction Permits, Legal and Title Fees (A*8%)	20,000	40,000
Roadway, Site Clearing and Preparation (A*15%)	37,500	75,000
Foundation, Concrete, Masonry (A*13%)	32,500	65,000
Wallboard, Flooring, Carpentry (A*12%)	30,000	60,000
Heating, Ventilation, Air Conditioning (A*13%)	32,500	65,000
Electric, Plumbing, Communications (A*10%)	25,000	50,000
Roofing, Flooring (A*12%)	30,000	60,000
Painting, Finishing (A*17%)	42,500	85,000

b) ii) Calculation of Estimated cost of 4000-ft² lodge is shown as follows:- (Amounts in $)

Size of Lodge	2000-ft2	4000-ft2
Construction Permits, Legal and Title Fees	20,000	20,000
Roadway, Site Clearing and Preparation	37,500	37,500
Foundation, Concrete, Masonry	32,500	65,000
Wallboard, Flooring, Carpentry	30,000	60,000
Heating, Ventilation, Air Conditioning	32,500	48,750
Electric, Plumbing, Communications	25,000	50,000
Roofing, Flooring	30,000	60,000
Painting, Finishing	42,500	85,000
Total Estimated Cost	250,000	426,250