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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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