2. Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the Appalachian Mountains. The plans show the size of the house to be 2,900 square feet. The average price for a lot and house similar to this one has been $120 per square foot. Fortunately, Serge is a retired plumber and feels he can save money by installing the plumbing him- self. Mrs. Tolstoy feels she can take care of the interior decorating. Chapter 5 Estimating Project Times and Costs 153 The following average cost information is available from a local bank that makes loans to local contractors and dispenses progress payments to contractors when spe- cific tasks are verified as complete. Excavation and framing complete 24% 8% Roof and fireplace complete 3% Wiring roughed in 6% 5% 17% 9% Plumbing roughed in Siding on Windows, insulation, walks, plaster, and garage complete Furnace installed 4% Plumbing fixtures installed 10% Exterior paint, light fixtures installed, finish hardware installed 6% Carpet and trim installed 4% Interior decorating 4% Floors laid and finished b. Estimate what the cost of the house would be if the Tolstoys use their talents to do some of the work themselves. Refer to "Exercise #2" part "b" in your textbook. Assuming that Tolstoys could also install carpet and trim themselves, the cost of the house would be: A) between 276,000 and 277,000 B between 277,000 and 278,000 C between 278,000 and 279,000 D Less than 276,000 OR more than 279,000
2. Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the Appalachian Mountains. The plans show the size of the house to be 2,900 square feet. The average price for a lot and house similar to this one has been $120 per square foot. Fortunately, Serge is a retired plumber and feels he can save money by installing the plumbing him- self. Mrs. Tolstoy feels she can take care of the interior decorating. Chapter 5 Estimating Project Times and Costs 153 The following average cost information is available from a local bank that makes loans to local contractors and dispenses progress payments to contractors when spe- cific tasks are verified as complete. Excavation and framing complete 24% 8% Roof and fireplace complete 3% Wiring roughed in 6% 5% 17% 9% Plumbing roughed in Siding on Windows, insulation, walks, plaster, and garage complete Furnace installed 4% Plumbing fixtures installed 10% Exterior paint, light fixtures installed, finish hardware installed 6% Carpet and trim installed 4% Interior decorating 4% Floors laid and finished b. Estimate what the cost of the house would be if the Tolstoys use their talents to do some of the work themselves. Refer to "Exercise #2" part "b" in your textbook. Assuming that Tolstoys could also install carpet and trim themselves, the cost of the house would be: A) between 276,000 and 277,000 B between 277,000 and 278,000 C between 278,000 and 279,000 D Less than 276,000 OR more than 279,000
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:2. Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for
the house sits high on a hill with a beautiful view of the Appalachian Mountains.
The plans show the size of the house to be 2,900 square feet. The average price for
a lot and house similar to this one has been $120 per square foot. Fortunately, Serge
is a retired plumber and feels he can save money by installing the plumbing him-
self. Mrs. Tolstoy feels she can take care of the interior decorating.
Chapter 5 Estimating Project Times and Costs 153
The following average cost information is available from a local bank that makes
loans to local contractors and dispenses progress payments to contractors when spe-
cific tasks are verified as complete.
Excavation and framing complete
24%
8%
Roof and fireplace complete
3%
Wiring roughed in
6%
5%
17%
9%
Plumbing roughed in
Siding on
Windows, insulation, walks, plaster, and garage complete
Furnace installed
4%
Plumbing fixtures installed
10%
Exterior paint, light fixtures installed, finish hardware installed
6%
Carpet and trim installed
4%
Interior decorating
4%
Floors laid and finished
b. Estimate what the cost of the house would be if the Tolstoys use their talents to
do some of the work themselves.
Transcribed Image Text:Refer to "Exercise #2" part "b" in your textbook. Assuming that Tolstoys could also install carpet and trim
themselves, the cost of the house would be:
A) between 276,000 and 277,000
B
between 277,000 and 278,000
C
between 278,000 and 279,000
D
Less than 276,000 OR more than 279,000
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