The following data are available on Del Fabbro International,Inc. The fixed (home office) overhead for the past year was$365,200. Total volume was $5.4 million. It is assumed thatG & A costs will account for $1.080 million of this volume.Del Fabbro uses a profit markup of 10%. The estimatingdepartment has indicated that the direct and field indirectsfor a renovation job will be $800,000. What bid price shouldbe submitted to ensure proper coverage of fixed overhead?Assume a 5% inflation factor and a 12% growth factor inthe calculation.
The following data are available on Del Fabbro International,Inc. The fixed (home office) overhead for the past year was$365,200. Total volume was $5.4 million. It is assumed thatG & A costs will account for $1.080 million of this volume.Del Fabbro uses a profit markup of 10%. The estimatingdepartment has indicated that the direct and field indirectsfor a renovation job will be $800,000. What bid price shouldbe submitted to ensure proper coverage of fixed overhead?Assume a 5% inflation factor and a 12% growth factor inthe calculation.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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The following data are available on Del Fabbro International,
Inc. The fixed (home office) overhead for the past year was
$365,200. Total volume was $5.4 million. It is assumed that
G & A costs will account for $1.080 million of this volume.
Del Fabbro uses a profit markup of 10%. The estimating
department has indicated that the direct and field indirects
for a renovation job will be $800,000. What bid price should
be submitted to ensure proper coverage of fixed overhead?
Assume a 5% inflation factor and a 12% growth factor in
the calculation.
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