Power Brite Painting Company specializes in refurbishing exterior painted surfac

Question

Power Brite Painting Company specializes in refurbishing exterior painted surfaces that have been hard hit by humidity and insect debris. It uses a special technique, called pressure cleaning, before priming and painting the surface. The refurbishing process involves the following steps:

Compute the average cost per job for the year. Round your answer to two decimal places.

Project the average cost per job for next year if variable costs per job increase 20 percent. Round your calculations and answer to two decimal points.

Explanation / Answer

Compute the average cost per job for the year. Round your answer to two decimal places.

$55,420/628 = $88.25 per job

Project the average cost per job for next year if variable costs per job increase 20 percent. Round your calculations and answer to two decimal points.

Fixed costs = rent, lease on two vans, depreciation of equiment

total fixed for year = 12*600 + 12*800 + 12*450 = $22,200

fixed per job = $22,200/628 = $35.35

Total variable = 55,420 - 22,200 = $33,220

Increase in variable of 20% = $39,864

variable per job: $39,864/628 = $63.48

average cost per job: 35.35 + 63.48 = $98.83

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.