contractor has a job which should be completed in 135 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 160 days. Of the 80 men, 50 are each paid 255 a day, 25 at 450 a day, and 5 at 790 a day. For each day beyond the original 135, the contractor has to pay 520 liquidated damages. Men are added so that he can complete the work on time. If of the additional men, 2 men are paid 470 a day, and the rest at 275 a day, would the contractor save the money by employing more men and not paying the fine?
contractor has a job which should be completed in 135 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 160 days. Of the 80 men, 50 are each paid 255 a day, 25 at 450 a day, and 5 at 790 a day. For each day beyond the original 135, the contractor has to pay 520 liquidated damages. Men are added so that he can complete the work on time. If of the additional men, 2 men are paid 470 a day, and the rest at 275 a day, would the contractor save the money by employing more men and not paying the fine?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A contractor has a job which should be completed in 135 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 160 days. Of the 80 men, 50 are each paid 255 a day, 25 at 450 a day, and 5 at 790 a day. For each day beyond the original 135, the contractor has to pay 520 liquidated damages. Men are added so that he can complete the work on time. If of the additional men, 2 men are paid 470 a day, and the rest at 275 a day, would the contractor save the money by employing more men and not paying the fine?
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