Q1 Quick Konstruct builds custom, high-end homes. Each home requires a bid, and Quick's bidding practise is to estimate the costs of materials, direct labour and subcontracting fees. These are totalled and markup is applied to cover overhead and profit. In the next year, Quick belleves it will be the successful bidder on 10 jobs with the following total revenues and costs: $648,000 tructions a) b) The excess is created to cover overhead and profits. a) Revenues Materials Direct labour Subcontractors Excess b) $200,000 $250,000 $150,000 Answer below: What is the markup percentage on total direct costs? If Quick is asked to bid on a job with estimated direct costs of $55,000, what is the amount of the total bid? If the customer complains that the profit is too high, how might Quick counter that comment? Show Calculations. Answer below: $600,000 $48,000 Show Calculations 4
Q1 Quick Konstruct builds custom, high-end homes. Each home requires a bid, and Quick's bidding practise is to estimate the costs of materials, direct labour and subcontracting fees. These are totalled and markup is applied to cover overhead and profit. In the next year, Quick belleves it will be the successful bidder on 10 jobs with the following total revenues and costs: $648,000 tructions a) b) The excess is created to cover overhead and profits. a) Revenues Materials Direct labour Subcontractors Excess b) $200,000 $250,000 $150,000 Answer below: What is the markup percentage on total direct costs? If Quick is asked to bid on a job with estimated direct costs of $55,000, what is the amount of the total bid? If the customer complains that the profit is too high, how might Quick counter that comment? Show Calculations. Answer below: $600,000 $48,000 Show Calculations 4
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Q1 Quick Konstruct builds custom, high-end homes. Each home requires a bid, and Quick's bidding
practise is to estimate the costs of materials, direct labour and subcontracting fees. These are
totalled and markup is applied to cover overhead and profit. In the next year, Quick believes it
will be the successful bidder on 10 jobs with the following total revenues and costs:
structions
a)
b)
Revenues
Materials
Direct labour
Subcontractors
Excess
The excess is created to cover overhead and profits.
b)
$200,000
$250,000
$150,000
Answer below:
Answer below:
What is the markup percentage on total direct costs?
If Quick is asked to bid on a job with estimated direct costs of $55,000,
what is the amount of the total bid? If the customer complains that the profit is too high,
how might Quick counter that comment?
+
Show Calculations
$648,000
Show Calculations
$600,000
$48,000
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